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48. Re: THQ Refocuses - Open Letter Jan 25, 2012, 17:45 Wowbagger_TIP
Prez wrote on Jan 25, 2012, 17:16:
Not to sound patronizing, but both Wowbagger and Matshock are right.

The rich have been demonized like nobody's business. It's classic class warfare drummed up by politician's who turn anger at the well-to-do people of society into votes for themselves. The problem is that CEO's of many companies become completely out of touch with reality (blinded by ambition or greed?) and end up making themselves fodder for such attacks.

It's easy to see both sides of the argument when on the one hand it's the "fat cats" who embark on business ventures that translate into jobs for the middle class, and on the other hand CEO's generally suffer the least out of anyone when a company tanks (and in fact can profit handsomely) when they are often the very ones responsible for the company's failure.

The reality is, however, Capitalism is the least vile of all the economic setups out there by a fair margin despite how it has been perverted by greedy, unethical corporate entities and equally greedy and equally unethical politicians. So, in my estimation, any solutions will be far from perfect. Sometimes so imperfect as to be more damaging than the problem it was developed to solve (see the current Administration's incompetence for recent examples).
Don't forget the previous administrations as well, which lead up to the 2008 collapse. Freeing companies like AIG and the banks from all those regulations over the last decade or so just let them go nuts with the risk with very little requirement to report any of it or to be remotely transparent about what they were doing. Then they just hold a gun to the head of the nation and demand that we not allow them to go broke. Nice. AIG was basically printing money for itself because thanks to "regulatory reform", they weren't required to maintain any capital reserve to cover all those CDOs they were insuring, nor did they even have to report any of it to anyone. So they could just keep raking in the fees without anyone being the wiser. At least until the housing market tanked and it blew up in their faces and we had to spend well over a hundred billion to bail them out, and that was just the direct bailout.

Of course the wealthy argued that you can't bail out the homeowners because that would create a moral hazard. If we were gonna spend a trillion or so anyway, might as well stop the first domino from falling, right? Then the CDOs wouldn't blow up, the banks wouldn't be failing, and the insurance wouldn't get hit. But no, they just wanted to bail out the guys at the top of the food chain. Funny how they didn't see the moral hazard problem with that.

Oh, and of course we continue to chug along with the most moronic regulatory infrastructure as well. Ratings agencies that are beholden to those that they're rating, and staffed by those who just weren't good enough to get jobs with the companies they're serving, and therefore not bright enough to figure out what they're up to. Regulatory agencies with similar staffing problems, lack of information thanks to the aforementioned "regulatory reform", and faced with political opposition serving as a barrier even to investigation much of the time.

These are the reasons we're so screwed.
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"The whole problem with the world is that fools and fanatics are always so certain of themselves, but wiser people so full of doubts." -- Bertrand Russell (I think...)
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