(The Australian,25-26,October,2008)
“I made a mistake in presuming that the self-interest of organizations,specifically banks and others,was such that they were best capable of protecting their own shareholders and the equity.”(Greenspan) “I was partially wrong…..in opposing the regulation of derivatives.”(Greenspan)
Of course he was wrong and so was Hayek,Keynes and Marx. Communism has proved that governments are no better at running the economy than greedy capitalists or unions. Train drivers at the Pilbara earn $210,000 a year and want more!,and the top CEOs’get $8million.
Unfortunately greed drives our ‘world’,communist states prove that power alone achieves nothing.
Greed made the U.S.A. the great nation it was and greed and the new socialist cult of taking on the responsibility for the poverty of the third world,has destroyed the West as a manufacturing super power and the generation of new wealth.
Regulation of the economy by the market cannot occur under any form of government as was proved when Democratic President Jimmy Carter signed the anti-redlining law which forced Banks to give loans to residents in poor neighbourhoods,which would lead to many recipients defaulting.
The politicians wanted to make home ownership available to all Americans.
Clinton went further forcing the part government owned U.S. mortgage institutions Freddie Mac and Fannie Mae to give cheap loans till they went bust for $5 trillion.
Americans do not learn,Obama will be worse than Clinton or Carter and McCain is little better.
Cheap credit with banks forcing loans on people was the best way of printing money and the stock exchange found new ways to generate phantom wealth,so do not complain if your capital melts away like snow in the sun.
I do not hold up much hope for the G20 summit. Too many of the inner city elite are making money from the chaos.
Mandelson,for his faults says it as it is. Britain needs to be less reliant on the financial services industry and the City’s influence would be diminished. The City will be smaller in future. Mandelson thinks that it is time to widen the economic scope to other industrial sectors.
