dsglop vs austrian perspective on the great depression

[Amadeus]

http://www.youtube.com/watch?v=REtwYhqhr_o&feature=feedu

He also really hates schiff too. Thoughts? Never see him discussed on here.

[boniek]

From his YT channel:

@dsglop

petey parrots,you guys love a man who oversimplifies the economy.You keep trying to blame the government for this entire economic disaster.You ignore key factors like there were many investment banks out there engaging in securitizing loans.Yes,Freddie and Fannie were major players in that market,but you are forgetting a few things.Facts like F and F were completely private corporations.Yes,they were set up by the government,but that was decades ago.And more humerously,their market share had been lowering for years due to completely private banks engaging in more risky loans than F and F were willing to get into.Many people believe that the Fed kept interest rates too low but only pete thinks that that is the only cause for this crisis.he wants you to think that all laws regarding regulating the private sector should be repealed and that we should let the private sector do whatever it sees fit.he forgets that in 2000 derivatives,or credit swaps,were deregulated and the market was allowed to bet against itself.This meant that after a severe blow from real estate collapsing,payments had to be made to people who bet that the market would fail.All of this and more combined to cause a systemic problem.Since banks hold each others debt and intertwine themselves quite thoroughly,one bank,Lehman Brothers,failing caused already hurting banks to worry that their already huge losses may only be the beginning.This shut down the credit market and,therefore,commerce.What pete doesn’t realize is that many small businesses depend on this market to get short term loans to get materials to do a project.No access to this market means supplies don’t get purchased,small businesses can’t complete contracts and people get laid off.BTW,Lehman failing was when Hank Paulson,a pretty free market guy,took a stand and said,too bad,banker bros.This is exactly what pete wanted but all hell broke loose.
What’s pete’s solution?Let them all fail.He doesn’t think that this will start the same cascade effect which deepend the Depression.pete thinks this will simply be the market shedding fat but it will actually be,and already is,good companies going bad unnecessarily.Yes,many companies need to restructure,but that is the beauty of this system,they can.This crisis has already got some asses in gear.And fundamental changes may need to be made to the banking system,but they need to be made while the economy is healthy.This guy’s main point is the most silly of them all.He thinks we need to worry about hyper inflation because we are injecting a few trillion dollars into an economy which has just lost tens of trillions of dollars.Even though housing,the average persons biggest expense,and energy,another huge one,have crashed and are showing no signs of recovery in the short term,he still thinks hyper inflation is looming.A recovery in those markets will only happen with a recovery in the overall economy which will tell us when to reverse some of the inflationary measures being taken.The only areas inflation has been a problem were ones which were rife with speculators,a private creation.

ROFL, so many logical fallacies and nonsense. I won’t comment on 9/11 and history stuff as I’m not interested in that.

[Praetyre]

Oh Ramakrishna, not the “TEH EBUL SPECULATORS” canard again. They’ll be accused of poisoning reservoirs and using our children’s blood in coca-cola at this rate.

[John_James]

@Amadeus

He also really hates schiff too. Thoughts? Never see him discussed on here.

You just didn’t look hard enough.

Anyway, as predicted in that thread, Jacob Spinney (profile here on the forum) spent no less than 10 (yes, ten) videos going back and forth with that asshat.

Have fun.