Originally Posted by northwestmexican
yeah thats true...
the biggest fault i see with our system of capitalism tho
is that money buys influence, democracy doesnt mean shit
when the worlds wealthiest people are in charge and they
just kick us back the scraps
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I hear liberals saying all the time that our capitalist system failed and that we need more government in it. They are talking about the recession. They clearly know nothing about Capitalism when they say that though. First of all the "predatory lending" to poor people was a government mandate started by Barney Frank and you can find videos online of him saying they will pressure banks to make loans to poor people and if they don't they will face the governments wrath the videos were made sometime in 2001 I think. The capitalist system at first was hesitant but then a lot of large banks realized they can make a HUGE amount of money quickly and they probably will have so much money that when the scam is up they can just get out of it and be set for life. Normally it is the governments job to make sure those types of scams don't happen but in this case they had the unrealistic goal of giving everyone a house so they ENCOURAGED and even FORCED the biggest banks to make loans to people who could never afford to pay it back. This caused the recession. What people need to understand about a recession is it may seem like a bad thing but it really isn't. It is kinda like diarrhea it's job is to flush all the bad things out of the market. So all those banks that scammed people(granted they were presssured into it by the government) would have collapsed leading to new more efficient banks taking it's place. If you look at the great depression some of the most powerful companies of today were started around that time because all of the faulty banks of that time were destroyed because of their inefficiency. Recessions and Depressions are a opprotunity for the Economy to get rid of all old inefficient stuff and replace it with the newer models that have come out.
Our companies have some very old school rules and ways of doing things that can date back all the way to the Great Depression. Some of the developing world countries actually have more advanced ways of doing things then we do because they didn't have a old style structure that needed to be taken down to replace it with a new style structure. For example in Iraq and Afghanistan now have these mobile phone type bank accounts where you get your pay checks directly so corrupt people can't skim a little off the top when your money changes hands to get to you. So all you need to do is show your sell phone to a store and they will send a message and then receive a text message from your bank account verifying you have the money. If we had let old style banks collapse during this recession then we would face tough times for a few years but then would have had a new style structure to our economy and would probably have made advancements like that by now.
However I am not just some cheerleader for Capitalism. My favorite type of economy in the world is "State Capitalism" in China. It is hard on the people when they build dams and stuff and simply move millions of people out of the way to get the most efficient dam. However their Socialism/Capitalism hybrid offers a very safe economy as long as they manage it well which they seem to be doing because the average farmer makes 4x the amount he made back before Communist took over China. They are estimated to surpass USA in terms of Scientific Research Thesis's by the end of 2010. That's how fast and efficient their State Capitalism system is.
Netheralands is a pathetic country. The only reason they exist is because they have large countries with different styles of government then them protecting them. Think about it do you think if the Netherlands was in Central Asia or the Middle East they would get away with have such a pathetic government? They don't have to worry about anything because they know France, Germany, Britain, and USA will save them.
Edit:
Also one thing you will not hear from the media and will have to do a good deal of digging to find is that THIS ALL STARTED UNDER BILL CLINTON. While Bush may have started the bailouts he actually predicted this collapse and tried to prevent it but his bills to try to prevent it were blocked by Democrats who believed everyone would get a house under their plan.
It is ironic Bush is getting all the blame for this when in reality Clinton was the one who accidently started it and Democrats like Senator Barack Obama refused to allow Bush to stop it from happening.
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