Zeev's Turnips Patch-No Politics (ZEEV)

[langostino]

Zeev - wasn't looking for "party" blame

was looking for individual policymakers and/or specific agencies and the specific actions or rules adopted. as you probably recall from previous posts, for example I think the backassward way we backed into repeal of Glass Steagall was part of what went wrong -- and part of what I believe is leading down a very dangerous path. Buffett has tried to warn of the consequences of the massive leverage introduced by letting major financial institutions mix banking with insurance and the monumental stacking of increasingly gamed derivatives.

I agree with you that theoretically gov't should interfere as little as possible with decisions relating to capital allocation. Their job should primarily be to re-internalize inappropriately externalized costs so irrational economic decisions and investments are not made. And also where near-term profit motive will leave us poorer as a result of long-term consequences of that application of capital. Of course in reality there is hardly a business that is set up to fully internalize costs -- in fact the profit motive is to game the system and do the exact opposite.