SUBSIM Radio Room Forums - Finance Crisis

Quote:

Originally Posted by Konovalov

Quote:

Originally Posted by DeepIron

IMO, I say "let them fail".

Those that have proposed this would present the counter-argument of somewhere along the lines of "They fail, then we all fail."

Let it fail and let it be a lesson for all of us and especially for America who resisted any more efficient control and reuglation mechnism until weeks ago. the argument you give just rewards the failure of the past, att he cost of all others. It legitimizes the risky games and the mismanagement that lead to all this. It turns lacking sense of responsibility and ölackiong sense of realism into ultimate wins and profits.

So, it will be tried again.

yesterday I finished reading y book by helmut shcmidt, and in the night, he was on TV in a 1 hour interview, or a 1-on-1 talk. He attacked america for it's stubborn rejection of any market reulation and control mechnaism, and loisted that in several fields the US already is the greatest regulator of all. Regarding the finacial crisis, he used a metaphor which is so very easy and correct: in earlier times there were only some sheep in the Lüneburger hathland, and therefor you needed no traffic rules at all. but today, there are roads and a huge highway, and traffic has become incredibly intense - there are thiousdands of cars now, and thus you need traffic regulation and rules. Fincial traffic also has become incredibly tense, very tense, and like too many cars running a grid of roads, crossroads and trafficlights, fiancial traffic today also needs a certain ammount of traffic rules, and oversight, and a traffic police.

He also - like I did above - complained and called it one of the worst aspects of this crisis that those responsible for mismanagement and preventing of efficient control mechnaism, cannot be held legally liable. This is something that needs to be changed in western law codes - there must be the possibility to hold managers and decision-makers responsible over the outcome of their decisions. Guess the will to take gambles with money that is not your own will dramatically fall very suddenly, and more solid management would start to dominate instead of casino-emotions.

The prices will rise all over the world in the coming months as a result of the aid package, if it really becomes reality in the form it was announced, for somehow, their must be refinancing for the costs it causes. Never forget that we all, americans and non-americans alike, will pay for both the failures at Wall Street and the American policy that stubbornly was determined to prevent better control and monitoring of financial markets - until it was too late.