We are a commune of inquiring, skeptical, politically centrist, capitalist, anglophile, traditionalist New England Yankee humans, humanoids, and animals with many interests beyond and above politics. Each of us has had a high-school education (or GED), but all had ADD so didn't pay attention very well, especially the dogs. Each one of us does "try my best to be just like I am," and none of us enjoys working for others, including for Maggie, from whom we receive neither a nickel nor a dime. Freedom from nags, cranks, government, do-gooders, control-freaks and idiots is all that we ask for.
Many businesses fail every day, and that's the way it ought to be. Otherwise, we would still have buggy whip factories in New York City. In Capitalism, failure is not a dirty word. In fact, failures reveal the success of the way things work.
While McCain and Obama seek to grab news space by blaming someone or something for the Wall Street business failures, I do not. Businesses come and go, from bait shops to corner lunchrooms to investment banks to car manufacturers. I feel badly for folks who lose their jobs, but otherwise I feel good about the creative destruction that Capitalism provides space for. Business is all about calculated risk: in the end, what profit rewards is risk, regardless of the product.
These investment banks were gambling to stay alive in a changing world, and made bad bets. Competition is what hones businesses - and they eventually fall if they cannot keep up or adapt - or behave imprudently, or encounter bad luck.
I deal with many business people in my work, and it is my conclusion that the biggest obstacle to business creation, and thus capital creation and job creation and wealth creation, is the government. Note that the biggest screw-ups of the year, Fannie Mae and Freddie Mac, were government agencies. So much for government's role in the financial industry: it inevitably becomes politicized, mediocratized, and corrupted - as with any government involvement in any industry. Few people in government could figure out how to run a candy shop, much less a complex enterprise.
Also related: How the Dems supported the sub-prime fiasco. Follow the money. And the banks were all too eager to play that game - as long as there were buyers for the junk. A game of musical chairs, as in all bubbles.
I know this is bad news but much of it seems to be grist for the media in their oursuit of a good capitalism bashing story.When the dust settles we will all carry on....some win some lose its the same old story and I for one would not have it any other way.
I have been trying to discern the proper usage of guango in our economy. It seems that Fannie Mae and Freddie Mac would qualify as quangocracies. The quangos do not seem to be doing England any good, what so ever.
I distrust any government agency and anything especially authorized by a government.