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The point of the mortgage deal was to sell mortgages to everyone no matter how risky and resell them to fools that could speculate on the secutiities. No body was expected to hold onto a property to actually live there or pay the loan off without selling the property to someone financed by another loan. The financial regulators were only doing what the lenders wanted then to do. The whole thing was a well planned and financed speculative bubble for the start. Like all bubbles it burst with the connected few making billions and the rest taking it in the wallet.
In a free-market capitalistic system, businesses should be able to do whatever they deem necessary to increase revenue. Law should place no limitations upon business unless business activity results in direct harm to individuals or communities.
Thus, business cannot dump toxins into rivers, but banks, for example, should be able to lend money to whomever they deem fit. Just like any business has the right to refuse service to anyone, so would banks be able to refuse service. Not wanting to lend money to blacks in order to keep a particular neighborhood white might not be politically correct, but in free-market capitalism, nobody is harmed and therefore, it should be alright to discriminate.
Alas, in such a system, you'd also have no anti-trust laws and are basing success of the system purely on survival of the fittest. The necessary result of such policies would undoubtedly be that ALL products and services are provided by a single entity - the one that has proven to be strongest.
Thus, free-market capitalism is bound to self-destroy. That's why we don't have it...
Not wanting to lend money to blacks in order to keep a particular neighborhood white might not be politically correct, but in free-market capitalism, nobody is harmed and therefore, it should be alright to discriminate.
I cannot imagine the insurance firm, bank, mortgage company, credit union, or any other present-day financial institution that would not want to do business with black folks, provided they were as credit worthy as anyone esle. And indeed many are and happily do business with these same firms.
The idea that free market capitalism is more racist than any other system is ridiculous. You can pass laws against racist business practices, but you're just substituting the government's judgement for the judgement of the market, and if you look back across history on average, much more racism has been perpetrated by governments than free markets. On average, government policy is more likely to be racist than free market policy.
The idea that free market capitalism is more racist than any other system is ridiculous. You can pass laws against racist business practices, but you're just substituting the government's judgement for the judgement of the market, and if you look back across history on average, much more racism has been perpetrated by governments than free markets. On average, government policy is more likely to be racist than free market policy.
You mean it wasn't Citigroup or Walmart who instituted Jim Crow laws or locked up innocent Japanese-Americans in camps?
In a free-market capitalistic system, businesses should be able to do whatever they deem necessary to increase revenue. Law should place no limitations upon business unless business activity results in direct harm to individuals or communities.
Thus, business cannot dump toxins into rivers, but banks, for example, should be able to lend money to whomever they deem fit. Just like any business has the right to refuse service to anyone, so would banks be able to refuse service. Not wanting to lend money to blacks in order to keep a particular neighborhood white might not be politically correct, but in free-market capitalism, nobody is harmed and therefore, it should be alright to discriminate.
Alas, in such a system, you'd also have no anti-trust laws and are basing success of the system purely on survival of the fittest. The necessary result of such policies would undoubtedly be that ALL products and services are provided by a single entity - the one that has proven to be strongest.
Thus, free-market capitalism is bound to self-destroy. That's why we don't have it...
This is incorrect. You have a high priced monopoly only when crony capitalism gets in the way of the free market. If someone has high prices another will come along and put out a less expensive product.
THAT is free market capitalism, no matter how you try to define it otherwise.
Should big banks, insurance companies, etc all deny all loans and insurance policies to minorities (blacks for example) who try to buy in certain neighborhoods? In an effort to keep entire neighborhoods white? Lets take this for example (from the article above).
Should this, in a free market capitalist society, be legal? In a laissez faire economy, shouldn't banks be able to decide to or not to give mortgages to whoever they wanted? Shouldn't they be allowed to create white only neighborhoods?
Discrimination like that is illegal, and is already against the law. Please provide actual proof of this ongoing, and which banks are doing it. If so, then those folks have a law suit.
If there is no proof then its the same woe is me attitude that many minorities have that hurts their race, and our country.
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