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Originally posted by Darth Jello
The works of Ravi Batra are a good start. http://www.ravibatra.com/

He's predicted most of the major economic and political developments of the last decade with fairly good accuracy. He was often off because of developments in technology and policy that he couldn't predict (i.e. he predicted the current crisis heralding the collapse of free market capitalism to initially occur prior to the collapse of communism).

Basically the school sees the most dangerous economic indicators to be wage inequality, wealth inequality, and low taxes which and defines American economic policy since Reagan to be paradoxically socialist in nature in that government policy is geared towards redistributing wealth through regulation and subsidy from the bottom to the top.

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Originally posted by Ushgarak
If people are going to post threads like this, could they please try to accompany them with facts so that people don't get the wrong end of the sitck? All this is encouraging ignorance.

The Government put 2.3 billion into the group last year as part of an asset relief programme, so any talk about the timing of any bailouts is not relevant. In any case, it will make the money back (unless dumb counsel prevails and it is allowed to fail). The remaining three billion was raised privately.

This idea that companies are failing is entirely their fault due to their dumb loans is another oft-quoted myth that needs squashing. The bad loans mean little except to the companies that folded imemdiately. CIT is in trouble because it cannot raise capital, which is the knock-on effect of the sub-prime loans that has caused most of the troubles since. That is beyond the control of such companies. Sub-prime lending was the CAUSE of the crisis; it is not the actual crisis. And it is very hard to blame companies for failing due to that reason because our entire economy was based around the idea of available credit.

I am changing the name of the thread to make it less misleading. Kidrock, post serious topics with more care in future. A single line opener like that is not acceptable.

This bankruptcy deal, which has nothing to do with Government intervention, will allow the group to keep operating. As DJ said, this is essential as the group is a vital link in the issuing of small business loans, which are desperately needed at this point in tine.

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Originally posted by KidRock
Why did banks give out loans they knew wouldn't get paid back (subprime mortgages)?

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Originally posted by dadudemon
Because....


It showed debt traffic (great for securities and shareholders) and there was no indication (for them) that the housing market would bust and that the market would become saturated with sub-prime loans.

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Originally posted by KidRock
Banks didn't realize that giving out millions of dollars to people with bad credit and no ability to pay it back would be a bad idea?

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Originally posted by Darth Jello
Well when you're treated as an omnipotent loan shark with religious fervor, isn't the whole idea of getting people into a debt they'll never be able to pay off so that you have a consistent revenue stream of interest and penalties and you can always sell your bad debt?