Comments on Obama’s Plan to Strengthen the Economy

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Re: Equations

You opined, "I don't think you can sustain that argument that the current fiscal crisis is a result of government micromanagement.  It is largely the result of incorrect assumptions by investors and the large financial services corporations; namely that real estate prices would continue to rise, so risky mortgages weren't a risk."

I see it as both sides making that assumption. Be that as it may, no sane businessmen would just plunge pellmell into risky loans.

posted by WriterofLight on October 1, 2008 at 8:51 PM | link to this | reply

Equations
You equate Obama's comments about the Free Market in general with his comments about the current state of the economy.  Obama doesn't.

I don't think you can sustain that argument that the current fiscal crisis is a result of government micromanagement.  It is largely the result of incorrect assumptions by investors and the large financial services corporations; namely that real estate prices would continue to rise, so risky mortgages weren't a risk.

But I don't like the proposed bailouts.  Other proposals, mostly outside government, seem to me to make better sense, like the plan of the Cato Institute, or following more or less the plan of the Swedish government to their very similar crisis in '92.  The keep the burden off the taxpayers more, and let the losses fall where they belong.


posted by mousehop on September 27, 2008 at 8:59 AM | link to this | reply