Comments on: Atlas Shrugged Updated for the Current Financial Crisis http://www.openculture.com/2008/12/atlas_shrugged_updated_for_the_current_financial_crisis.html The best free cultural & educational media on the web Mon, 13 Feb 2012 21:01:48 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Dan Colman http://www.openculture.com/2008/12/atlas_shrugged_updated_for_the_current_financial_crisis.html#comment-3313 Dan Colman Sun, 15 Mar 2009 21:11:14 +0000 http://www.oculture.com/?p=1869#comment-3313 Um, the last time I looked, Greenspan hasn't been running the Fed since 2006. Sure you're not thinking about Bernanke? Dan Um, the last time I looked, Greenspan hasn’t been running the Fed since 2006. Sure you’re not thinking about Bernanke?

Dan

]]> By: Alex Mocaby http://www.openculture.com/2008/12/atlas_shrugged_updated_for_the_current_financial_crisis.html#comment-3312 Alex Mocaby Sun, 15 Mar 2009 19:36:15 +0000 http://www.oculture.com/?p=1869#comment-3312 um....If you actually knew anything about the principles Ayn Rand taught, you would know that Greenspan has followed almost none of them in this crisis. um….If you actually knew anything about the principles Ayn Rand taught, you would know that Greenspan has followed almost none of them in this crisis.

]]> By: Dan Colman http://www.openculture.com/2008/12/atlas_shrugged_updated_for_the_current_financial_crisis.html#comment-3310 Dan Colman Mon, 15 Dec 2008 05:47:22 +0000 http://www.oculture.com/?p=1869#comment-3310 There is no doubt that the Fed created the conditions for the bubble. But low interest rates can't really explain why the banks started dealing in subprime loans and liar loans, essentially eliminating all loan standards, once they sold all the legitimate loans that they could. The Fed tempted the banks. But the banks crossed the line, and they deserve a good part of the blame. At least in my mind, you can't have a fully deregulated system if you can't depend on the players to make prudent decisions, even if they're tempted to do otherwise. There is no doubt that the Fed created the conditions for the bubble. But low interest rates can’t really explain why the banks started dealing in subprime loans and liar loans, essentially eliminating all loan standards, once they sold all the legitimate loans that they could. The Fed tempted the banks. But the banks crossed the line, and they deserve a good part of the blame.

At least in my mind, you can’t have a fully deregulated system if you can’t depend on the players to make prudent decisions, even if they’re tempted to do otherwise.

]]> By: Dary http://www.openculture.com/2008/12/atlas_shrugged_updated_for_the_current_financial_crisis.html#comment-3311 Dary Mon, 15 Dec 2008 03:42:16 +0000 http://www.oculture.com/?p=1869#comment-3311 Don't get mad at deregulation, get mad at the Federal Reserve. Your argument - "...if you let banks govern themselves, they won’t actually do the right thing" - isn't valid. If you add the premise "and you let the government's central bank keep interest rates as low as they want thereby making credit extremely cheap and encouraging malinvestment" you'd be getting warmer. I'm not saying the banks aren't culpable, I'm just saying the Federal Reserve is the root cause of this problem. Don’t get mad at deregulation, get mad at the Federal Reserve. Your argument – “…if you let banks govern themselves, they won’t actually do the right thing” – isn’t valid. If you add the premise “and you let the government’s central bank keep interest rates as low as they want thereby making credit extremely cheap and encouraging malinvestment” you’d be getting warmer. I’m not saying the banks aren’t culpable, I’m just saying the Federal Reserve is the root cause of this problem.

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