What if we let them all fail?

Government spending is one thing, which I believe they would reduce. However, they would also cut all the regulatory agencies and let business run unchecked and we all know how well that works.

 

And the world's economy couldn't expand past the amount of gold that could be mined.

 

I can certainly understand that position, especially in light of the recent actions. However, libertarians and the lack of regulation was not the cause of the problem. A large part of the problem is that the government likes capitalism in the mortgage industry so much it tried to put it on steroids by encouraging subprime loans.

If our government had not taken steps to encourage the expansion of subprime lending, then subprime loans would have remained a niche financial industry ruled by a few who knew how to properly price the risk. Instead we see a situation where lenders who do not know how to properly price the risk made subprime loans at only a small premium to prime loans. Additionally, those lenders did not feel the need to adequately protect themselves through tougher underwriting because the government (Fannie and Freddy) would buy the notes and the banks would escape with the premium.

If the government was not so heavily involved in the mortgage industry, these problems may not have arisen. Of course, if the government was not so heavily involved in the mortgage industry we could also easily face a situation where most Americans could not afford to buy a house because of high interest rates and short repayment plans.

I don't think there are any easy answers.

 

I've seen some posters give their opinion on the root causes.

Here's an interview by Paul Craig Roberts (scroll down midscreen for it).
http://www.counterpunch.org/nowopolski10312008.html

 

Lol, are you trolling or something? The economic 'bailout' is up to over 8.5 trillion and there's no transparency required of the bankers. Congress was threatened with martial law if they didn't pass the bill. These bankers are evil scary powerful people rendering Congress absolutely useless. The current system of 'regulation' is completely corrupt!

The point is, IF WE KEEP THE FEDERAL GOVERNMENT OUT OF THINGS WE DON'T LOSE ALL OUR MONEY AND FREEDOM!

That is what libertarianism is all about. There's a reason why local and state governments had huge power when this country was founded, because when the Feds take over, corruption reigns.

 

Yes, and the Constitution is just a g*d damned piece of paper! Just turn on your TV to CNN and let the nice Federal Reserve elite bankers manage your money.

Fact: This country never had a depression OR WORLD WAR until the Federal Reserve was implemented in 1913.

But nooooo Red Chocolate, times are changing and we don't need gold/silver standards backed by government law, we need to give the Fed unchecked power to print unlimited amounts of money in their sick Ponzi scheme.

 

So the Federal Reserve is responsable for WWI and WWII?

http://en.wikipedia.org/wiki/Correlation_does_not_imply_causation

 

I am not surprised about anything that involves them. They are massive and insure trillions of assets across the world.

 

WW1 and WW2 obv. Elite bankers had a huge interest in WW1 and WW2 because it made them money, created unions amongst countries and expanded their global powers. So, yes I would say the higher powers of the Federal Reserve had a huge interest in both wars and heavily financed everyone involved.

 

I think you're missing something crucial from the article wrt to the necessity of bailing out AIG.

 

Red chocolate, you're doing a great job of confirming the fallacies concerning the viability and practicality of libertarian thought as a governing philosophy. Kudos.

 

The closest period in our history we had with a libertarian economic policy was the Robber Baron age.

It was a disaster. Children were practically slaving, many workers were victims to slum lords who also happened to be the owners of the businesses where they worked. There were horrible conditions where many worked, no health standards with the food people ate or were sold. There were monopolies, unfair business practices, hiring practices, workers had no rights, no access to safe work environments, worked for unfair wages, for ridiculous wages. Corruption was abound.

It was a horrible mess. We did have the gold standard, but I would trade that in heartbeat for health care, higher wages, fair labor laws, safer products, food, and medicine, etc.

Let's never go back.

 

Exactly. Currently China is experience something similar right now, we all know these companies are so great at self regulation for the good of the people.

 

I'm anti-libertarian but not all tenants of the philosophy. It isn't that libertarians are anti-regulation, as much as they are anti-federally mandated regulation. I believe they would accept it coming from local governments.

The problem with that is that we have 50 different sets of regulations, and states with one set of regulation wouldn't allow products from other states with weaker regulations in territory because of the differences.

Some things need to be done at a federal level. Also you have some states weakening regulations in order to attract more businesses and jobs. Then with fewer and fewer regulations comes the unsafe products and working conditions.

 

But it must have been a great time. We had the gold standard? The Federal Government was smaller?

 

Where would we be without the bailouts? Damned if I know, but the only way to fight against corruption and incompetence is to let it die, even if it has serious consequences. Do your homework, Congress was threatened with martial law if they refused to pass this bailout. MARTIAL LAW. Is that not a red flag that the bankers are heavily in control of our government?

So put me on the record, I am opposed to any entity that steals money from our citizens without consequence. The problem came way before this bailout, it started with the inception of the Federal Reserve in 1913.

Libertarians are laissez-faire, pro competition, pro state/local government, pro Gold Standard, anti- Federal programs (most of them). Liberterians believe in civil liberties, minimal government interference, and FREEDOM.

While regulations are necessary in some industries, the ones we have in place obviously aren't working in the banking industry, and the system is obviously flawed and/or corrupt.

I find it mind boggling that people still defend their two party system that basically does nothing to defend against these evil bankers that STEAL your money. Give up your Constitutional rights and you'll find yourself a slave before long.

 

Well that's a great starting position to make an argument from.

Out of curiousity, are you a member of InfoWars ( http://www.infowars.com )? If not, it sounds like something you may be interested in.