How much worse would the housing market crash be if conservative laissez-faire philosophy was standard policy?

Question

Laissez-faire economics (the central crux of conservative economic thought) were PROVEN to be an utter failure by the great depression.

and now conservatives want to bring it down upon us (only with a far greater scope and magnitude) all over again.

will we let them?

A non-answer from J1 - next

a non- answer from pdooma - no surprises so far

plus LIES from pdooma -- as expected

accepted by whom -- YOU?

"The housing correction we're having now is a natural one and will steady in the next year or so if we don't keep loaning money to people who cant or won't pay it back."

in a laissez-faire world - predatory lending would be EVEN MORE COMMON PLACE

"The Fed caused the Great Depression and the late 1920s super-boom that preceded it."

more total BS -- the stock market crashed due to laissez-faire dummy not the fed

Pure Logic give us pure DRIVEL

laissez-faire was practiced best by King Louis

Doc, under laissez-faire no need to lobby dummy

and Doc - not blaming people -- blaming a PHILOSOPHY

bacco - Bernake (a loyal bushie pays hommage to milton freidman and you are surprised?)

bacco believes in supply-side no doubt

bacco - how can you not see that laissez-faire ALWAYS ends in monopoly and slavery

Sara E - economists disagree for political reasons sometimes do they not?

Answer 1

Laissez-faire economics ? that's what got us to this point in housing, and every next big idea is sold as such, just under a different, less discredited name.that is the basis for planned obsolescence...our throw away world. "what ever the market will bare" fruit.

Answer 2

It wouldn't be happening, since we would also have hard money, and no fractional reserve banking, which allows banks to create money from nothing, hence encouraging them to lend to anyone and everyone, regardless of your ability to pay it back. If the lender pays, the bank gets free money. If the lender doesn't pay, the bank gets a house. A win-win situation for them.

Oh yeah, the Fed did cause and prolong the Great Depression, not free market capitalism.

Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression. You're right, we did it. We're very sorry. But thanks to you, we won't do it again.

Quote from Ben Bernanke, head of the Fed.

http://www.federalreserve.gov/BOARDDOCS/SPEECHES/2002/20021108/default.htm

Page the quote was taken from. It is at the bottom of the page.

I do realize you will just call me a liar, but what can I do.

Answer 3

If Laissez-faire was in play it would not happen because they would know that no one would bail them out.

If people took out loans that they knew they would not be able to pay then shame on them and take the house. If lenders made loans they could not collect then I guess they just bought a house. If investors were not aware of what they were investing in then they gave away their money.

As it is the Government will make the boo-boo go away and idiots will do it all again.

http://en.wikipedia.org/wiki/Laissez-faire

Answer 4

Ask the Senate. They're refusing to vote on the bill the House passed for relief.

BTW, it's pretty much accepted philosophy now that FDR's policies extended the depression longer than it needed to be. The housing correction we're having now is a natural one and will steady in the next year or so if we don't keep loaning money to people who cant or won't pay it back.

EDIT: It's a badge of honor you enjoy calling me a liar. Are you going to report me too?

Answer 5

*sigh* here we go again... Another mindless question. Have you ever stopped to consider that perhaps it's the fault of the lenders? They suckered people in knowing they wouldn't be able to make good on the payments. And now we're supposed to blame Bush, the Republicans and anyone other than those actually responsible? How long will it be before the childish left gets their act together and stops playing the blame game and begin to take responsibilty for themselves and their poor decisions? Time to grow up.

Answer 6

Not.
If you would just get a job, you would realize that we are going up, not down.

Great Economy for Working People.

Even Welfare Democrats are doing better.

If you really believe that Socialism is better, move to North Korea and check it out.

Answer 7

It would be much worse. Thank the Lord for Democrats.

Answer 8

let's see how far it falls if the dems get in with their HIGHER TAXES that they have promised!

and yes we will stop them (dems) in 2008