tag:blogger.com,1999:blog-1089082204850170942.post1440795570029211299..comments2024-03-21T12:52:08.166+11:00Comments on Freedom and Flourishing: Why occupy Sydney?Winton Bateshttp://www.blogger.com/profile/07383561940886657594noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-1089082204850170942.post-31540930376957071152011-12-02T17:24:39.797+11:002011-12-02T17:24:39.797+11:00I still think the Australian banks were in relativ...I still think the Australian banks were in relatively good shape during the GFC - not much exposure to sub-prime and substantial reserves. I don't know why they qualified for loans from the Fed. <br />The articles you referred me to were interesting. <br />One of the points that seems to be missed in a lot of the discussion is that it is important to distinguish between the central bank action to buy up dodgy bonds to bailout the banks and the profligate governments that have issued those bonds, and central bank action to buy good quality bonds etc in order to prevent deflation of the price level and a deep recession. <br />The first type of bond buying seems to me to be pretty silly and the second type seems to me to be very sensible (within limits).Winton Bateshttps://www.blogger.com/profile/07383561940886657594noreply@blogger.comtag:blogger.com,1999:blog-1089082204850170942.post-80889822834611158092011-12-01T21:11:34.306+11:002011-12-01T21:11:34.306+11:00Yes. Maybe central banks needed to step in but why...Yes. Maybe central banks needed to step in but why all the secrecy and the assurance that Australian banks were so robust in the first GFC? When they were not? <br /><br />I think David Malone author of Debt Generation and Paul Craig Roberts an ex-editor of the Wall Street Journal have some interesting comments on the Europe situation:<br /><br />http://www.golemxiv.co.uk/2011/11/bank-funding-crisis-deepens/<br /><br />http://www.counterpunch.org/2011/11/28/just-another-goldman-sachs-take-over/#.Ttc8JNXAmAU.twitterNicola Moirhttps://www.blogger.com/profile/03694465554864338497noreply@blogger.comtag:blogger.com,1999:blog-1089082204850170942.post-26684070053278147772011-12-01T21:03:32.542+11:002011-12-01T21:03:32.542+11:00I expect that what was happening was that other so...I expect that what was happening was that other sources of lending had dried up, but the Fed had stepped in to keep the system liquid - so our banks borrowed from the Fed. <br />I wouldn't be surprised if something similar might happen as a result of the European crisis. When normal inter-bank lending dries up as a result of loss of confidence, central banks step up to the plate to keep the system working. That is why we have central banks.<br />I can't claim to know much about this, but I think there is an important distinction between a situation where a central bank provides funds so banks can continue to lend and a situation where banks have to be re-capitalized because they are about to become insolvent.Winton Bateshttps://www.blogger.com/profile/07383561940886657594noreply@blogger.comtag:blogger.com,1999:blog-1089082204850170942.post-79953894835342732112011-12-01T16:53:56.973+11:002011-12-01T16:53:56.973+11:00Did you know about the bailouts of NAB and Westpac...Did you know about the bailouts of NAB and Westpac? Why were they kept secret?<br /><br />http://www.moneymorning.com.au/20101203/nab-and-westpacs-secret-bailout-revealed.htmlNicola Moirhttps://www.blogger.com/profile/03694465554864338497noreply@blogger.comtag:blogger.com,1999:blog-1089082204850170942.post-30821202230838198952011-12-01T11:27:26.996+11:002011-12-01T11:27:26.996+11:00I suppose the interesting thing about GFC was that...I suppose the interesting thing about GFC was that many of the people who were responsible for it were people who had huge status in society. This was embodied in both in their job title and material trimmings. However, when the GFC occurred their motivations and behaviour became exposed and we could see them for what they were which was at best irresponsible and reckless and at worst corrupt criminals. So my suggestion is this could imply that how we construct status in our society is flawed and destructive.Nicola Moirhttps://www.blogger.com/profile/03694465554864338497noreply@blogger.comtag:blogger.com,1999:blog-1089082204850170942.post-69764307427510254192011-12-01T10:52:43.188+11:002011-12-01T10:52:43.188+11:00I can certainly understand why people feel that th...I can certainly understand why people feel that the bank bailouts were unfair. <br />It is unfair that some industries/corporations are able to exert political influence to obtain benefits at the expense of the rest of the population. I am not sure to what extent that explains why the bank bailouts occurred - bailing out the banks probably seemed to the government to be desirable to contain the spread of the GFC. However, it seems plausible that excessive political influence of the big banks explains the shortcomings of financial regulation in the US prior to the GFC.Winton Bateshttps://www.blogger.com/profile/07383561940886657594noreply@blogger.comtag:blogger.com,1999:blog-1089082204850170942.post-15496179710261181842011-12-01T07:41:26.679+11:002011-12-01T07:41:26.679+11:00I feel a sense of injustice about the wealth distr...I feel a sense of injustice about the wealth distribution as I think many people have taken advantage of their professional positions and exploited people. This is certainly true in the UK where I was when the GFC hit. I was amazed at the irresponsibility of many people in the banking sector and subsequent bail-outs by the government and now I continue to be concerned with the consequential impact on UK society. <br /><br />I think there was the same irresponsibility here but as you mentioned it was better regulated. However, it is certainly not without people in positions of responsibility exploiting the system, such as the corruption charges against the Reserve Bank of Australia. <br /><br />Globally, I think the wealth divide is too large and there is too much power concentrated in too few hands. This power and wealth concentration seems to inevitably lead to an abuse of the power and exploitation of people and the environment. <br /><br />However, I also see the same irresponsibility can be with people who are part of the 99%. I think we all need to assess our values and principles and act to turn off the Kim Kardashian show and start understanding what is really happening in the world.Nicola Moirhttps://www.blogger.com/profile/03694465554864338497noreply@blogger.comtag:blogger.com,1999:blog-1089082204850170942.post-23656975477547180292011-12-01T06:40:13.169+11:002011-12-01T06:40:13.169+11:00Nicola: Thanks for responding.
I am not sure how...Nicola: Thanks for responding. <br /><br />I am not sure how Jim's theory is consistent with a sense of injustice about wealth distribution. I suppose a lot of people feel that the distributional outcome should be merited in some sense. Yet few complain about governments sponsoring lotteries - systems to randomly select a few people to become rich.Winton Bateshttps://www.blogger.com/profile/07383561940886657594noreply@blogger.comtag:blogger.com,1999:blog-1089082204850170942.post-13458487499457638382011-11-30T21:41:12.480+11:002011-11-30T21:41:12.480+11:00nice post :) I've found lots of nice work on y...nice post :) I've found lots of nice work on your blog. thanks a lot for sharing with us.Jobs In My Areahttp://jobsinmyarea.weebly.comnoreply@blogger.comtag:blogger.com,1999:blog-1089082204850170942.post-31433956067766671212011-11-30T20:05:37.496+11:002011-11-30T20:05:37.496+11:00In my opinion there Jim's theory of the 99% ma...In my opinion there Jim's theory of the 99% making the 1% rich is perhaps true as I believe in the power of the people. I believe that when the 99% choose to stop doing this things will change. I live in hope that people have the ability to challenge the present injustice of the wealth divide. I think inequality leads to an underlying unhappiness in people as people enjoy contributing and giving more than they enjoy taking. In my opinion we need to flip our system of taking as much as you can to giving as much as you can as it makes us happier. That is my thought for now anyway... the very short moment I can grab. <br /><br />Also like Jim, I don't get the Kim Kardashian thing. I still can't work out why people are interested.Nicola Moirhttps://www.blogger.com/profile/03694465554864338497noreply@blogger.comtag:blogger.com,1999:blog-1089082204850170942.post-21737819212604425222011-11-30T16:50:27.436+11:002011-11-30T16:50:27.436+11:00Thanks Nicola, but I was hoping to start a convers...Thanks Nicola, but I was hoping to start a conversation. <br />For example, do you think Jim's theory of income distribution is too simplistic?Winton Bateshttps://www.blogger.com/profile/07383561940886657594noreply@blogger.com