Take capitalism for instance… It is based on the premise of supply and demand, markets are self-regulating, and that the individual or company that makes a better mouse trap for less will prevail, so long as there is a demand for mouse traps, and other companies will either adjuster their prices, technologies, or fail. The common misconception with capitalism is the idea that companies and individuals have to MAXIMIZE their profits. I understand that companies are in business to make money, but maximizing profits is what causes businesses to cut corners in production, dump into the environment (to avoid the cost to properly dispose of materials), ship jobs to other countries where labor laws and minimum wages are less enforeable, etc. Adam Smith (the proclaimed god of capitalism) in “A Wealth of Nations” saw markets as self regulating, EXCEPT the banking system. Even Adam smith in 1776 understood the need to regulate the banks. It is to vital of an institution to allow to go unchecked.

The current system (Federal Reserve system) is designed to cause inflation. The fractional banking system is inherently flawed. This inflation and need for credit/debt is one of the causes of the level of National debt. Who knows when the last time the U.S. national debt was 0? it was during the civil war, before the Federal Resever was in existance, we had the green back. the United States is the worst of all developed countries in the world when it comes to income disparity. We focus on GDP (Gross Demostic Product), I feel a better determining factor as to the economic stability of the nation would be per capita. Where would we be ranked then? I agree that the Federal Reserve along with corporate greed and a society that shovels the “american Dream” idea down the citizens thoarts are the root causes of the financial crises. But as long as lobbyists (there are 5 finacial lobbyists for every member of congress) and campaign contributions (it is now legal for corporations to donate unlimited amounts of fuinds to campaigns; Citizens United case)there will be no incentive for the government ot begin regulating or changing tghe current system. The rich get richer, politicians get more corrupt, and the poor bear the burden, but dont worry…we always have the jails to keep the poor from doing anything about it.

Incidentally, all these banks and AIG employ people, say, IT personnel, tellers, and such. Let’s them be unemployed, after all they worked for these banks, so they must be responsible. All this unemployment will sure help the economy.

And what about companies that sell, say, computer equipment to all these banks. They’ll suffer losses too. What exactly do companies do when they suffer losses. You guessed, they lay off people. Are you sure your job will be safe when more banks fail?

Incidentally, have anybody bothered to read the details about, for example, AIG deal? The government lends money to AIG at 11%-something, and gets to control 79.9% of the company. There are parts of AIG which are quite profitable, and successful sale of these parts can actually bring more than what government loaned AIG. There is a pretty good chance that the government will actually make money here.

As to other assets that the government will buy – it all depends on the price.Unless we know the details, how do we know it will be just a waste of money? It may actually be a good deal if some of these assets are bought at the right price.

And if you think it cannot possibly be a good deal, look at Chrysler bailout in 1980. The government made a whole lot of money when the Chrysler rebounded. Until we know the details of the bail out, why are we so sure it’s not going to be as profitable as the Chrysler deal?

Nope, I don’t work for the financial industry. I work for a large technology company that sells computers and stuff, and yes some of our customers are those banks…. Are you sure your companies will be unaffected if all these banks are allowed to fail?

http://www.youtube.com/watch?v=MO6P_yjKFR4