Dan M <[EMAIL PROTECTED]>
> The problem was that no-one (including the board of directors of AIG knew
> that AIG was insolvent until the day the government intervened.
LOL! Do you believe in the tooth fairy, too?
> At that point, _everything_ becomes questionable. GE having to pay nearly
> double for a 1 day note is an example of this.
Oh, the horrors!
> The viewpoint you are
> expressing here makes Milton Friedman look like Karl Marx.
Hmmm, if you actually knew what you were talking about, I might take that
as a compliment.
> The government did not intervene in the market after the panic of 1929. It
> did after the panic of 1987. The latter turned out fine, the former was the
> start of the Great Depression.
The Fed caused much of the Great Depression by not increasing the money
supply during a banking panic. The stock market crash of 1987 was not
a banking panic, it was volatility due to wrong-headed program trading and
portfolio insurance, the propagators of which lost their shirts and the silly
techniques largely disappeared from the market.
> I'm sure you'd call it coincidence...or other factors in play, but panics
> and bubbles are inherent part of any market. Its irrational to think all
> market players act rationally.
It is funny that you would think I would disagree with this. It is also
irrational
to think that a bunch of politicians and people like you know how to "fix" the
system by taking taxpayer money and using it to enrich a bunch of bozos
who made foolish loans at ridiculously low interest rates because the government
encouraged the process.
> It may be true, like the early economist said "the market will work in the
> long run." But as Keynes said "in the long run, we're all dead."
Just a thought, but you might inspire a bit more confidence in your marks
if you spent a little time learning about how markets and regulation actually
work and a little less repeating cliched-jokes that were corny when my
grandfather was young.
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