BS Filter

The heart of the wise inclines to the right, but the heart of the fool to the left.
Ecclesiastes 10:2.

Clara007

I'll let R respond to your question but I can certainly think of two examples when unbridled capitalism DID NOT WORK: 1929 and 2008.

BS Filter

Capitalism wasn't the cause of 2008 meltdown. Forcing banks to lend money to people that couldn't pay it back caused 2008.

Clara007

The problem is that we (most of us) do not want a society where profit is the only criterion: we want stability, quality of life, protection from faulty products, job security, housing and good health.
Apparently, the GOP thinks differently. They want all those things for themselves AND their loved ones, but not for everyone because in their world PROFIT DOES COME first.

Is that survival of the fittest? Only the strong survive?

Clara007

JUDAS---I wish you could read OR retain what you read. I didn't say capitalism. I said UNBRIDLED--UNCONTROLLED--UNCHECKED--UNCONSTRAINED--UNREGULATED....capitalism.

Jimgorn

That was not the fault of Capitalism.....It was the regulations that allowed or caused these crashes to happen....Especially 2008....The Federal Government ordering banks to loan money to people who are not qualified to have them was the main cause of this mess...

Clara007

I'll refer you to post #55.

Jimgorn

Clara....it was the REGULATIONS that caused the problems....Not the Capitalism...

BS Filter

Wrong. Try this.
https://www.forbes.com/sites/georgel...nd-dodd-frank/

Clara007

Uhhh...you can't be serious. I'm supposed to read an opinion by a guy I've never heard of--never read--isn't an economist, a tinker, a tailor or a much of anything- except a freelance writer who sent his opinion to Forbes. The guy doesn't even have a finance degree.

Thanks, but no thanks.

How about this. 1) Low mortgage interest rates 2) Low short-term interest rates 3) Lower standards 4) Irrational behavior/greed and the... 5) Credit crisis.

The one essential cause of the housing bubble was irrational behavior and greed. The housing bubble would not have occurred without the widespread belief that home prices would continue to rise. Greed contributed to the other three causes. Mortgage interest rates would not have been so low if foreign investors and credit rating agencies had not believed that U.S. home prices would keep rising. Low short-term interest rates would not have led to such extensive use of ARMs and such a high degree of leveraging without greed. And relaxed standards for mortgage loans would not have led to such a large increase in subprime mortgages without greed.

The perfect storm.