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Politics : Just the Facts, Ma'am: A Compendium of Liberal Fiction

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To: Oeconomicus who wrote (26780)1/16/2005 9:39:15 PM
From: Orcastraiter  Read Replies (1) of 90947
 
I think I addressed that - you'll also have more money in the hands of investors, with no choice but to invest it.


I don't see how having more money to invest helps cover the debt we incur to cover the transition.

A crash or bubble is not the same thing as fraud. Investors concerned about volatility and risk can invest in less volatile investments.

No it's not necessarily fraud, but it could be part fraud. But a crash of the market could put those that did not invest in low risk instruments in a bad way. You know there will be many of those folks. Some folks are gamblers. But aside from folks making bad decisions a market crash could precipitate failures of other institutions. Same with a bond market bubble. Then of course it would once again be the government's job to step in and clean up the mess.

As for the rest, I don't much care for the idea of the government teaming up with private financial institutions to try to direct investment to "targeted projects". The market does a better job of allocating resources than any central planners ever could.


Ok then, let them loan money to anyone with a good project and the collateral to secure the loan. I guess in this way the government would be competing with banks. But the government should be able to make capital work for the people just as any business can.

Orca
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