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Originally Posted by redpoint5
I've been critical of the stock market. A 1-time capital raise results in trade activity that persists as long as the company is still around. That is extremely inefficient, and stock brokers contribute nothing of value to society, and the trade activity creates nothing too.
I've also been critical of advertising. It isn't used to inform people anymore, but to manipulate emotions. Whenever someone is trying to manipulate emotions rather than inform, they are attempting to circumvent reason, which is an extremely effective strategy. I absolutely loathe advertising. What's the alternative though, all of us living like Spock with little personality expressed?
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Quiggin gets into this on page-74,so I've got something to share with this.
Quiggen talks of 'narrow banking'.
*reverse the burden-of-proof with financial innovation.
*discourage it until the financial sector does the equivalent of a double-blind,randomized,placebo-controlled,clinical trial and proves the economic efficacy of the derivative or other product.They can't market it unless they prove its risk-safety to the global economy first.
*no government protection without regulation.
*no government protection for a regulated entity doing business with an unregulated business.
*explicit public guarantees for clients.
*guarantee of solvency
*nationalization as last resort.
*maintain sharp boundaries between speculators.
*no limits to laissez-faire as long as all risk is borne by the risk taker and their own capital,not by the community.
*hedge funds would be completely on their own.
*finance companies would be completely on their own.
*stockbrokers would be completely on their own.
*mutual funds would be completely on their own.
*payday loan businesses would be completely on their own.
*title loan businesses would be completely on their own.
*ownership links between a regulated parent company and an unregulated subsidiary would be absolutely prohibited.
*speculate at your own peril.
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Quiggen discusses the likelihood that the U.S.A. and world is probably looking at 'mixed-
economies' as a solution.A communist-laissez-faire hybrid as you see today in Russia and China.My political science professor predicted this for the United States in 1976.
Free market capitalism hasn't worked out so well.The carnival barkers who continue to advocate for it are in on it.There is no trickle down.All it does is concentrate wealth at the top.It violates the preamble of the US Constitution.
'Everything you know is wrong!',Firesign Theatre,Dr.Demento Show,KMET Radio,Los Angeles,California,1973.