tag:blogger.com,1999:blog-6798074091942701235.post9192818143682585124..comments2024-03-29T01:35:09.550-04:00Comments on Can Turtles Fly?: Opinion: Why AustEcon supporters will never rule a countrySivaram Vhttp://www.blogger.com/profile/06361276466660862882noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-6798074091942701235.post-73134220636560472992009-08-18T10:31:56.000-04:002009-08-18T10:31:56.000-04:00Do you honestly think the average person can do du...Do you honestly think the average person can do due diligence on the banks? It certainly didn't happen to any satisfactory degree in the 1800's or 1900's! And clearly no one, including banking experts, such as analysts, investors, bond investors, and regulators, know what is going on at the the banks. Perhaps you are an expert an was able to put your savings in a safe bank but the vast majority population, including experts, can't determine what is a sound bank and what is not. This goes for the megabanks, who were exposed to toxic structured products, and, it also applies to the small banks, who had negligbile exposure to structured products.<br /><br />Certainly, in Canada, which is similar to the US, except five banks dominate, there is no way I could figure out the risk inherent in the banks. Admittedly, I'm just some guy off the street who doesn't do due diligence on banks for a living, but I suspect even if I paid someone to do it (which is what you are suggesting since average people like me don't have the skills), I suspect the experts wouldn't know for sure either.<br /><br /><br />Your argument goes to the root of what I was criticizing. You pure free-market views seem good in theory but are completely useless in the real world. On top of increasing costs (it's cheaper to get mass insurance from the government than it is for individuals to hire private analysts to research bank soundness), it just doesn't work. Like I said, look throughout history. You can even look when there was gold standard all over the world. There was no way for a depositor to protect themselves.Sivaram Velauthapillainoreply@blogger.comtag:blogger.com,1999:blog-6798074091942701235.post-90595439593181901892009-08-18T07:27:54.000-04:002009-08-18T07:27:54.000-04:00The FDIC is akin to Medicare. The government shif...The FDIC is akin to Medicare. The government shifts the costs to those who made a concerted effort to stay healthy from those who didn't. A savings account is a risk investment. The US is a pampered and irresponsible lot that expects everyone else to pull their feet out of the fire when they are too lazy to do due diligence. No more. JoelDee/BerlinGuestnoreply@blogger.comtag:blogger.com,1999:blog-6798074091942701235.post-86215708097076454642009-08-17T11:04:59.000-04:002009-08-17T11:04:59.000-04:00Yep... I feel that a lot on the "right" ...Yep... I feel that a lot on the "right" blindly believe in the markets, which is no different than, as you point out, people on the "left" who blindly believe that communism will lead to an prosperous, egalitarian, society.Sivaram Velauthapillainoreply@blogger.comtag:blogger.com,1999:blog-6798074091942701235.post-66302469565650498112009-08-16T23:52:43.000-04:002009-08-16T23:52:43.000-04:00Great argument. These market fundmentalists are a...Great argument. These market fundmentalists are as bad as communists.Guestnoreply@blogger.com