CNBC's Dylan Ratigan: Capitalism is broken

[Celebration]

Run time: 00:45 https://www.youtube.com/watch?v=23fMADUGqPI   Posted on YouTube: October 16, 2008 By YouTube Member: Views on YouTube: 0   Posted on DU: October 17, 2008 By DU Member: Celebration Views on DU: 802

 
Okay, I know it is morning Joe with Pat Buchanan and Harold Ford, Jr. I am posting this because Dylan Ratigan, more than any other CNBC reporters, gets to the heart of the matter on the causes of the economic meltdown. Over and over again on CNBC, he points to the unregulated credit default swaps, and allowing excess leverage in the investment banks.

He doesn't quite go there, but all of this points to Christopher Cox, the (non) head of the SEC as the main culprit in this disaster. Why appoint someone who doesn't believe in regulation to a regulatory job? Gee thanks, Bush.

:sarcasm:

[YOY]

1. Reaganomics is not Capitalism.

Reaganomics never worked. I've been saying that for years. Many of us have.

Making everything "free market" is not only bad economics...it's insanity.

Capitalism works fine when regulated and contained to things that warrant it: automobiles, luxury goods, electronics, general consumer goods, financial services, etc...

Now insurance industries? Medical care? (To some extent) Pharmaceuticals? Governmental services? THE MOTHER FREAKING MILITARY? Just asking for trouble...

If Governmental services are not doing what they should do then there are methods to fix it beyond privatization. But I'm explaining the obvious.

[niceypoo]

5. You took the words right out of my mouth...

This is my standard comeback to the Republicans at my work. Supply side economics is not capitalism. It is cronyism, kleptocracy and has nothing to do with the free market. Supply side basically says that the government must continually prop up corporations by shoveling them borrowed money and tax dollars. It is corporate welfare.

[JohnyCanuck]

2. "The Bailout's New Financial Oligarchy.”

Dr. Michael Hutson, economist and historian on KPFA's program Guns and Butter.

audio link: http://www.kpfa.org/archives/index.php?arch=28908

Quote @ the 4:55 mark: “….Essentially, the treasury bailout plan passed by Congress was a screw the investor plan. It said banks do not have to mark their securities to market, that they can use Enron style accounting to tell people that they’re worth whatever they want to be worth, and foreigners and investors have realized that the banking system and Wall Street are run by crooks.”

[JDPriestly]

3. Scarborough is in total denial.

Capitalism has to be regulated. Contracts have to be enforceable and have to be enforced if the trust needed for liquidity is to develop. Regulation is a means for enforcing contracts among the various participants in the economy. Without effective and thorough regulation their is no transparency, no trust and eventually no liquidity. No regulation equals lawlessness.

The pure free market simply does not work. Bush moved too close to a lawless economy, and now, of course, we have a crisis in liquidity.

[barack the house]

4. People are getting it sustained wealth is Democratic and taxes enable that to be possible.>

If the wealthy play by the rules pay their share their businesses and potfolios will thrive as folks can then afford to buy things it's all very simple really. You have to spend money to make money that includes tax and wealth distribution. As a free for all system only sends wealth stright up.

[ghostsofgiants]

6. You mean it wasn't broken when it was creating massive inequality and suffering around the world?

That's my biggest problem with this whole scenario. OH NOES, TEH CRISIS! RICH PEOPLE WON'T BE QUITE SO RICH!11elevenTYONE!!1!

But it's not a crisis or a problem at all when millions of people are living in slums worldwide? It's not in crisis when there are people who, in an affluent society such as the United States, are homeless? Or struggling to pay for their medical fees? Fuck that. It's always been broken and in crisis, because it doesn't do the fundamental thing it's supposed to do: create wealth for those in the system. It merely redistributes it upward and keeps many completely outside of the system.