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Termyn8or -> RE: Why a wall street ? Why ? (2/10/2011 9:54:21 AM)
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I'm all for getting rid of it, but we can't. And though I think in the long run we would've been better off if had never started, things would be different. Other methods of financing business would have been found.
All the big companies would not be so big, and while that sounds attractive, things like telephone service would've taken alot longer to become useful. On the other hand, there would be alot fewer businesses that are "too big to fail".
They should've let them fail. "Some people" will call me crazy, because they morbidly fear the consequences. Ways would've been found to conduct business. Perhaps GM would have went under, but how many cried when Tucker and Cord failed ? And it seems ironic, banks have gone out of business before, but now these bigger banks cannot fail, why ? Because they have MORE money ? Doesn't sound quite logical does it ?
When I saw advertisments for $150,000 mortgages for $600 per month I knew it was not right. I knew people would get screwed when time came to actually pay down some principal. But I never thought it would come to this, that it was so widespread as to actually threaten the economy the way it did. If the smaller banks had to loan out their own money they would've been more careful, but "free" money fueled the bubble which was a larger part of the problem than anyone thought. Think if the money isn't flowing like a river, home sales slump, this drives prices down. Their antics had the opposite effect. They thought it could go on forever.
It could go on forever, if real wages increased, but they didn't, at least for the fleeced. The whole scam,,, err scheme runs on growth, real growth of the economy. When they started fudging the numbers, that fueled the "cycle" which should have experienced some measure of attrition. The market would've corrected itself.
Commodity trading is similar. First of all it can be viewed as dirty rotten bastards buying up our necessities to sell later when the need is greater. Ostensibly to smooth out the inherent variations in prices, that system was ripe for abuse. It went from something akin to buying heating oil in the summer because it's a smart thing to do, to putting the grain in silos until people get hungry. And some people are so philanthropic that they will let the grain rot unless the price goes high enough.
A growing economy can withstand the abuses, and indeed it did for quite some time. But two things happened, the REAL economy didn't grow, at least our's, and the abuses became too much to bear anyway, as those who never worked a day in their lives bought the influence to make more money without working a day in their lives.
Economic stratification was bound to happen, as the investing class taxes the working class. Don't think it's not a tax just because the government didn't impose it. The definition of the word "tax" is not specific in that regard.
For better or worse we are stuck with it. Along with the bad, there are many things that never would have happened, advances in technology for example. Without "free" trade, which is actually unfair trade, you wouldn't be able to buy a cellphone for $25. You would be reading the screen of perhaps a 386 right now and GPS wouldn't exist.
Give a person wings with which to fly for half his life, and then take them away. That's about what it would be like to abolish this system. Without it ever coming into existence, he never had wings. The problem is now, he can no longer walk.
T^T
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