You said it all in just two sentences!!!!! Read the Declaration of Independence! This is not a dictatorship it is a free democratic society. They must have fallen asleep when their history teacher went over this part of the lesson better yet they were absent!

All of these things are/were already regulated, but like all things government does, the regulation is completely politicised and incompetent.

The all powerful and altruistic regulators weren’t watching AIG, and to cover themselves and their friends, bailed them out (with our money). They weren’t watching Madoff, and self-rightously prosecuted him and polished their halos (i feel so much saver, now). The incompetence goes on and on, yet the only solution you can come up with is to give these same idiots more power, because somehow now they’re smarter now and won’t let any more bad things happen.

Why are people who are so against free markets immediately attack people as Ayn Rand desciples. Do you even know what the philosophy of Objectivism entails? Have you read anything by Rand other than Fountainhead or Atlas? If so, did you understand it?

Seriously, though, I do love me some bond market and you’re right, sort of, about how it’s much more in-depth and fun to analyze. However, that doesn’t mean it’s exemplifies the “virtues of free markets” better than anything else.

I’m done with this argument because when it gets to the point of attacking someone’s free market ideals by saying they just mimic Ayn Rand means you’ve gotten to the end of your rope. You can continue because I’m not opposed to opposing views here. I actually appreciate you challenging me.

what is it about you guys wacking off to the likes of Ayn Rand and George Will? just because you read Atlas Shrugged doesn’t mean you are a real free market capitalist – what are you a stock broker? grab some nuts and go trade some bonds in chicago, then you might be able to talk about the virtues of free markets……

First, I want to get something straight: I am not for anarchy. I believe there needs to be rules to prevent people from stealing. You cannot have a fair market if that does not exist.

Second, I hate the AIG and derivatives market argument because, AIG’s stuipdity aside, it was mostly a symptom, not the disease. There is much more involved with why there were so many defaults and why AIG was wrong to hold so much of that garbage, and it basically comes back to the forced housing boom, the government manipulation of interest rates, and, of course, AIG’s mistakes. Mostly, the Federal Reserve is the main culprit for many reasons, not the least of which is that it exists at all. By necessity, the Federal Reserve will create booms and busts. They’re the ultimate market manipulators.

The “unregulated derivatives market” is a very common scapegoat but the reasoning behind that is flawed.

Oh, and if we just let the individual companies like AIG fold, we would learn that it’s not the end of the world. Plus, the credit default swaps and such work better than the pretty much completely government controlled mortgage industry (hell, it was created by Fannie and Freddie).

Finally, the scammers are not a product of an unregulated market. They are the product of a crappily run regulatory body. Why? Because we let the government do it. We put our faith in the government to have our best interests at heart (they don’t). There were no fewer than six letters written to the SEC about Bernard Madoff that were probably just thrown away. Nothing was done. They were too concerned with making me (I’m in the industry) sign four forms and get approval from our compliance office so that I can go to the bathroom.

Don’t bring that weak stuff in here.

anyway the guys point is on a relative basis – you guys probably would like to have complete anarchy in markets – all Dow is saying is that the cycles go to extremes and then reverse – he is right, regardless of the level of free markets you wish to achieve.

What universe are you living in? Do you honestly believe that with all of the government regulation and interference with the economy in that last 100 years that we somehow have laissez-faire economic policies?

I think you need to look up the word laissez-faire.