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What is the ideal capitalist system in your opinion? I have always believed in laissez-faire but now that I have been working in the financial sector for a while, I have seen so many "legal" practices that are just unethical and totally outrageous, if not borderline illegal. If these same practices were done by an individual, he/she would be in jail. Is more governmental oversight a must or should financial companies be free to continue to do these practices?
Location: I currently exist only in a state of mind. one too complex for geographic location.
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the largest, and greediest corporation in the entire world, the united states federal government, fails at everything they do. we've not had a free market in decades. every time the government sticks their greedy noses into something, they ruin it.
What is the ideal capitalist system in your opinion? I have always believed in laissez-faire but now that I have been working in the financial sector for a while, I have seen so many "legal" practices that are just unethical and totally outrageous, if not borderline illegal. If these same practices were done by an individual, he/she would be in jail. Is more governmental oversight a must or should financial companies be free to continue to do these practices?
Well, we all know totally free market does not work... we would have a handful of monopolists controlling everything like the earlier part of the last century... we also now see that overregulation (like the 70's and 80's) and underregulaion (like the 90's and '00's) don't work either... there's a sweet spot to find but unfortunately our body politic jerks left and right instead of swaying.
the largest, and greediest corporation in the entire world, the united states federal government, fails at everything they do. we've not had a free market in decades. every time the government sticks their greedy noses into something, they ruin it.
I am going to share a common scenario here. Client makes a cash deposit for 50K, deposit is held by financial institution for 2 weeks, client was never notified of hold at the time of the deposit, client writes 4 checks to cover business expenses, checks clear before the 2 weeks and client is hit with 4 overdraft fees (35 bucks each), a total of $140, even though the money was there. At the same time, financial institution is earning interest for 2 weeks on client's cash deposit and client has no access to his own money for 2 weeks. I find this type of practice absolutely outrageous.
I am going to share a common scenario here. Client makes a cash deposit for 50K, deposit is held by financial institution for 2 weeks, client was never notified of hold at the time of the deposit, client writes 4 checks to cover business expenses, checks clear before the 2 weeks and client is hit with 4 overdraft fees (35 bucks each), a total of $140, even though the money was there. At the same time, financial institution is earning interest for 2 weeks on client's cash deposit and client has no access to his own money for 2 weeks. I find this type of practice absolutely outrageous.
Do you think something like that needs to be regulated or can the market decide that such behavior is so outrageous that customers will take their business elsewhere? That's the issue, no? When is it reasonable for the government to step in? What level of abuse is too much?
I am going to share a common scenario here. Client makes a cash deposit for 50K, deposit is held by financial institution for 2 weeks, client was never notified of hold at the time of the deposit, client writes 4 checks to cover business expenses, checks clear before the 2 weeks and client is hit with 4 overdraft fees (35 bucks each), a total of $140, even though the money was there. At the same time, financial institution is earning interest for 2 weeks on client's cash deposit and client has no access to his own money for 2 weeks. I find this type of practice absolutely outrageous.
Competition solves that problem quite handily.
But your Original Question is very tough.
So far, the only Bunker I can find to protect from that question, is Galt's Gulch.
Maybe we should go back to government models used pre-FDR. We seemed to be a successful country then.
Pre-FDR there were devastating financial crisis about every 15 years; 1797, 1807, 1819, 1837, 1857, 1873, 1893, 1907, and 1929. Following the regulations imposed during the New Deal, the US, while suffering from periodic downturns in the economy but as a result of the continued assault on the regulatory fabric we saw a return of the financial disasters that plagued the U.S. since its founding, the savings and loan failures, Enron and now the present crisis in the financial markets. In short a 50 year span of crisis free economics (oil embargo aside) do to the regulations put in place during the Great Depression, and you are calling for a return to the 19h and early 20th Century as a responsible alternative?!?
Heaven help us.
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