Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: CalculatedRisk who wrote (53128)	2/8/2006 4:07:29 PM
From: Ramsey Su	Respond to of 110194

federalreserve.gov this survey is well worth glancing through. Credit standards on residential mortgage loans were reportedly unchanged over the past three months. On net, 44 percent of domestic banks reported weaker demand for mortgages to purchase homes, a notably larger net fraction than in the October survey. Demand for consumer loans reportedly had weakened further over the past three months: About 30 percent of domestic banks, on net, saw weaker demand for such loans, up from about one-fifth in the October survey. About 40 percent of domestic respondents indicated that they anticipate the quality of their nontraditional residential mortgages to decline.

To: CalculatedRisk who wrote (53128)	2/8/2006 4:54:54 PM
From: GraceZ	Respond to of 110194

These guys are far more eloquent in addressing the myth of market failures than I am: mises.org

To: CalculatedRisk who wrote (53128)	2/8/2006 5:30:36 PM
From: gpowell	Read Replies (1) \| Respond to of 110194

I think there is a tendency to view government and markets as if they are in competition. If government did not already exist, surely collective individual action (the free market) would create one, this implies that government is an endogenous creation of the market – designed to solve market failures. A pure market, if that means no dependence on institutions or conventions, is extremely limited and not suited to exchanges that produce the majority of wealth. A problem arises when the government is given a monopoly on coercive power, which it must have to some degree in order to function. At that point government is subject to capture by special interests. In this context we can view constitutional democracy as a constraint on governmental capture imposed by the market.