Free Market does what the Government can't or won't do
By bobmnu
@bobmnu (8157)
United States
April 29, 2011 12:11pm CST
Wwe have all heard about the financial meltdown and how the Banks caused it an the Government rewarding them by bailing them out at taxpayer expense. No charges were filed, no one ended up in jail and no one paid a fine...till the Free Market stepped in.
It seems that some investors followed the advice of their bank (Citigroup) and the claimed to have lost money because the bank committed fraud in selling derivative or leveraged municipal bond which was to be a very safe investment. These investors sued and won a $54 million settlement. This has spured more investors to sue over poor advice given by their Wall Street Brokers and Bankers as well as companies. If you follow investments you will see an increase in investor involvenment in such things as executive compensation and voting out people on the Board of Directors.
These financial engeneers received a talking to by the government but lost their money to the Free Market. These law suits were filed against the company and the Board of Directors and they will have to pay the price.
I do have more faith in the Free Market than the Government to do what is best for the people.
2 responses
@peavey (16936)
• United States
29 Apr 11
Absolutely. The free market will always find a balance, even if it hurts getting there. The government tries to control the market, often without truly understanding the consequences of it. It's like diverting a natural stream and not knowing what wildlife or land mass it might effect, while allowing it to change itself as all streams do, gives the environment a chance to change with it so that it doesn't create disastrous repercussions.
@bobmnu (8157)
• United States
30 Apr 11
The housing market is a great example. When the government made cheep money available to allow people to buy a house with no downpayment they caused the prices to sky rocket. People who invested wisely in they home and bought what they could afford suddently found themselve with an overpriced home and very high property taxes. Unintended Consequences
@Destiny007 (5805)
• United States
30 Apr 11
The free market will always out perform the worthless government, everytime. It doesn't matter whether it is healthcare, insurance, or anything else. The free market tends to destroy those who fail, whereas the government just keeps making bad decisions and billing the taxpayers for the losses.
@bobmnu (8157)
• United States
30 Apr 11
Just look at the governments ablity to deal with fraud committed against them. medacare and medicade are running about 30% of the claimes against the trhem are fraud while the private insurance runs about 1%. Government workers get paid the same weather they catch the fraud or not. Private insurance gives the employees bonses based on what they recover. Which works for you?
