Quote:
Originally Posted by Tactitus
that the first bailout is absolutely necessary and proper (and I'm not sure how you would do that)
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I'm aware of my giant self-revision. It's a result of acknowledging that your views on markets clearing perfect and invisible hand taking care of it all, and private sector fundamentally being corruption-free and regulation being source of it's flaws is impenetrable.
Only two questions.
First, you imply that financial markets worked well before bailout mechanics and government interventions. Do you think say 1907 was a signal of this well-functioning healthy financial sector (back then, there was no regulatory system in place, let alone a federal reserve).
Second, could you direct me to a few of these academics (preferably ones with some creditentials) that argue that bailouts of Freddie Mac and Fannie May were mistakes, or argue that they should have never happened?