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.

Politics : GOPwinger Lies/Distortions/Omissions/Perversions of Truth -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (146000)	11/6/2008 4:31:18 PM
From: geode00	Read Replies (1) \| Respond to of 173976

That kind of thinking works IN THEORY but in the real world it leads to all kinds of bad consequences. We don't live on a piece of paper in an ivory tower. We are talking about real people living real lives. It is always unclear how much government support or interference is optimal. We don't yet know if the government should have rescued Lehmann or AIG or BS or any of them. You can certainly have a government that stands back and does nothing. I don't know what the consequences are. If you can backstop MMFs and raise FDIC insurance in order to prevent runs on banks, dry up of credit and depression then don't you think the government should do this? If government support applies to the financial system and high risk investment banks then why shouldn't this apply to small producers of organic lettuce dealing with the vagaries of agriculture? Why shouldn't the government, for the public good, subsidize the creation of more green leafy acreage and corner grocers? I don't know the economics of the industry but I'd rather subsidize the eating of green leaves than high fructose corn syrup. I'm not talking about the role of financial intermediaries who provide an actual, useful service. I am talking about those gambling on debt defaults and borrowing money to do so. I read that health insurance companies, looking to make better profits managing HSAs than providing insurance, are becoming financial institutions. This is curious.