Wednesday, October 1, 2008

A small, small glimmer of clarity

This interview on Fresh Air helped me out a bit. Especially coupled with the giant pool of money episode on TAL.

Moments of clarity include:

  • Rather than investing in a basketball team, this is betting on whether the team will win or not
  • Purposeful creation of a shadow market
  • Phil Graham writing legislation around derivatives as "not insurance" so states cannot regulate them
  • These were bets & someone has made money from these bets. Yes, there are winners in this. Should we have an economy based on whether people make good or bad bets? Or should it be based on sound investments and productivity. This economy is based on people sitting at their computers and making bets all day long.
  • The undoing of depression-era legislation that protected people's savings accounts from risky investments by investment bank/depository institutions
  • Ultimate irony: The more you argue for deregulation, the more you end up with government owned entities.
  • Eliminate the ability for banks & lenders to make money even if the loan fails. It removes financial discipline from the market.

Also making me feel like this was helpful? It was recorded in April and foreshadows some of what's going on now. In plain language & he speaks slowly too, which I appreciate given the topic.

Some additional glimmers:

Feeling better about the rejection of the bailout bill on DN!

Don't let the market freak you out about the economy from Beat the Press

Where did the money go? from Planet Money

It is still pretty dark in here though. Send a glowstick, eh?

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