It seems fairly obvious that it would not. It is very hard for a large business to remain a dominant player without gifts from the government. Big business is not enamored with the free markets libertarians advocate. In a free market big businesses are constantly sniped at by smaller but more nimble competitors. Smaller newer companies are hungrier and usually have newer equipment. They often have fresher personnel. Free markets make life hard for big business.
In the wake of the housing crash, wide swathes of the desert Southwest, Florida, Atlanta, parts of California, and other places were littered with relatively new homes which were empty. The pre-seeded lawn turf often hadn’t even taken root before the foreclosures began.
Each vacant home represented a personal economic disaster for someone. Families moved in with grandparents. Pets were left in shelters which were filled far beyond capacity. It was only a couple of years ago. For many the memory is still very fresh.
But at about the same time parts of Tuscon started to be reclaimed by tumbleweeds a few hedge funds (and banks) figured that there was yield to be made from renting the homes which were now unused back to the people who could no longer afford to own them. If the homes could be pooled along with the rents, perhaps the investments could even be sold as derivatives.
Market solution right?
It’s time for the former head of America’s central bank to make bank.
Regulations can be used as a weapon. They often are. Dodd-Frank is an example of this. The big banks were in on the writing of the legislation and the little banks, the community banks, were left out in the cold. Too big to fail and too small to succeed, as determined by the state.
Attached is an extremely well done article which lays out why it is that today’s political establishment, especially the “progressives” are so afraid of libertarianism.
It is interesting to hear (some) people praise Mr. Bernanke for having “saved” the United States and the world from Great Depression II. This praise is misplaced to say the least.
The economic tide has been going out for quite a while, but the pace has just quickened in emerging markets – big time. Things have become quite unsteady and no one knows whether the current instability will trigger something broader in the developed economies. China is slowing. Japan has horns locked with China economically and increasingly politically. Europe is catching its breath before another wave rolls through.
Oh the horror, the Fed is only dumping $65 billion into markets next month. Boo hoo. We want our free money!
There was a time when saving, being prudent, delaying gratification, and being modest was rewarded in this country. That is much less the case now under a Federal Reserve which manipulates interest rates down for the benefit of the Wall Street class.
Is the unwind here? It appears so. It’s coming sooner or later anyway and people are coming to terms with this. “Sentiment” is shifting.