To: puborectalis who wrote (36769 ) 4/2/2011 11:04:34 AM From: John 6 Recommendations Respond to of 71479 -- and where would these companies get the capital to expand in these vacuums. 1. personal capital 2. private investors 3. equity markets 4. bank loans [...] -- Secondly,what would happen to all the people who would lose their jobs in all the industries ancillary to banking and autos? The corporations that ultimately would have replaced GM and the failed banks, in your hypothetical scenario, would have required many of the same ancillary goods and services. [...] -- "survival of the fittest" works in Nature but not on WallStreet/Main Street. The tenets of capitalism and free markets facilitate fair, healthy, and vigorous competition. When a business model fails, capitalism provides the means for healthy companies to step in, provide supply to satisfy demand, and supplant failed corporations. [...] -- Injection of monies by the Fed into the system has now ,you must admit,stabilized the markets and for sure,the capital markets and the stock market. Artificially, by means of printing massive quantities of additional fiat currency, and to the detriment of capitalism and free market principles that reward superior business models, healthy balance sheets, the best executives, and innovative thinking. Instead, the status quo and abject failure was rewarded. [...] -- Would you ever had believed that the stock market would be at these heights now?...and the stock market is a pretty good indicator of the economic health of the country at least 6 months into the future. That was once a generally true statement at a time when capitalism and free markets were allowed to operate naturally under the principles of the efficient market theory. Since TARP was forced on the United States, the equity markets, bond markets, and capital markets have been reduced to tightly-controlled vehicles that are subject to the secretive whims and policies of the U.S. central bank and the U.S. government that enables it. Bottom line: Capitalism and free markets constitute the only legitimate and functional models in the world, when allowed to function naturally without undue interference.