"They are then overthrown by the Middle, who enlist the Low on their side by pretending to them that they are fighting for liberty and justice. As soon as they have reached their objective, the Middle thrust the Low back into their old position of servitude, and themselves become the High-http://www.newspeakdictionary.com/go-goldstein.html"
How do I put the above text in a box?
Long before Orwell but recent enough to be relvant, the French were guillotining their fellow revolutionaries (revolters?) before the revolution ws complete. In hindsight, this period in bhistory may well appear very different to how it seems now.
Who guaranteed the risky lending being done by banks? Who has kept and is still keeping interest rates low? Who is printing/inflating the money supply and devaluing savings? Who bailed out banks that under a true capitalism should have been allowed to go bust?
The US government.
They are protesting a symptom not the cause of the illness.
For the most part the lending was not guaranteed at all. The US Government only stepped in when it became apparent the entire banking system was under threat from massive defaults rolling through the system to the point where the lack of available credit supply would impact smaller and smaller manufacturers and businesses who essentially rely on banking credit to pay wages and materials bills against inventory sold but not yet manufactured or paid for.
The US also put some pressure on other countries to enact guarantees to stop the crisis spreading.
Instead of a direct bailout maybe they could have guaranteed the instruments, accepted the bankruptcy of the institutions involved and as usually follows, taken administrative (bankruptcy) control of those institutions prior to organising sales of their remaining assets and infrastructure. My understanding is the US Government rejected this option as being too disruptive to the continued functioning of the financial system which depends on these institutions.
The US Dodd-Frank act (2010) addresses these problems by creating an administrative body able to call on the resources necessary to enact a liquidation if needed, and regulating the financial instruments involved.
Some critics point out Dodd-Frank leaves some corners of the market essentially without capital controls and therefore fear these corners will expand and create a new potential crisis, but at least that is some way off.
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It's also worthwhile considering the time frame that a lot of these decisions were being made in (over a weekend to consider what needed to be done and the potential implications).
If the contagion had been stopped after the first couple disentegrated it would have worked, but at the time no one really had an idea that it would be as widespread as it was.
""We all know that markets move in clearly defined cycles of greed and fear," Key said. "Sure, some professions - such as currency traders, for example - do particularly well during the greed part of the cycle""
Capitalism: an economic system in which investment in and ownership of the means of production, distribution, and exchange of wealth is made and maintained chiefly by private individuals or corporations, especially as contrasted to cooperatively or state-owned means of wealth.
vs.
Communism: a theory or system of social organization based on the holding of all property in common, actual ownership being ascribed to the community as a whole or to the state.
Yeah, I think I know which one I prefer (and its not communism)...
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