7 Fixes for a Market Failure

Intelligent person but

I do have some respect for Mort because of his views on Mclaughlin group. however what I find missing in articles like these is how to increase demand for housing. one is to let the prices fall more and more till more buyers find it affordable. The other is to fix the broken immigration system and to process residency a bit faster for legal immigrants (note - I mean legals who are already in the US ..because of the broken system it takes around 8 years for them to get a green card ..after paying around 15 thousand dollars in fees - (lawyer and other)).

A Most Shameful Article

I already knew that people who wield alot of power never told people the truth, but to suggest that the Fed, which is NOT the government but a PRIVATE institution controlled by PRIVATE banks(the seven largest shareholders are not even listed!), have MORE control over markets IS JUST SHAMEFUL.

IF you do not understand how a fiat money system works vs. a hard currency system, like the gold standard, then I will explain it to you.

If I deposit gold into a bank then that bank can put out loans on said gold as long as I keep it in that bank....that bank cannot put out more loans than it has in collateral b/c it would make the bank insolvent if everyone were to pull their gold back out. In this system, credit cannot just be created and this system gives the free market more stability b/c it puts more lending and credit restrictions on a bank than could ever be put on a bank by regulations written in a book.

Fiat money systems, like the Federal Reserve, work on a credit/debit system that makes every man, woman, and child be forever in debt to the Fed b/c they print money and lend it to banks on a percentage. This credit, however, is NOT backed by any collateral and is created for banks, basically out of thin air(but is based on a complicated algorithm that includes GDP, inflation, confidence of other central banks in the growth of our economy, and many other things), to artificially stimulate investment in whatever market investors think they can make a quick buck in. This "artificial credit" that is created can only benefit the first receivers of that credit b/c they are allowed to buy credit on loan and possibly make more money then they owe....which is not always the case as is true in any "bubble" for it is this artificial creation of credit that CREATES the bubble.

So it is the LACK of a gold system that creates monetary instability b/c the banks are allowed to control the flow of money, the direction of the economy, the direction of the government, and in effect basically control the ENTIRE country.

So, in summary, you are a FRAUD and you should be ASHAMED that you had enough gall to even write your column!

Hear! Hear!

Mr. Z -

What you suggest is, in concept, like allowing the DMV to regulate the way cars are built. They are tangentially connected, but allowing a government agency more power over the free market smacks of a losing ideal.

It would be wonderful to believe that the government can swoop in and fix the problems accrued by private lenders, and individuals - but in the end, it is in the market's best interest to allow these institutions, and again - individuals - to fail. I hear tell of hard-luck stories of people being given mortgages that knew they wouldn't be able to pay back - and I wonder, who signed the documents? I know there is a lot of fine print, but in all honesty, you are signing away a majority of your income for thirty (or more) years. I would imagine someone would make the effort to understand what it is they are signing. And if they don't, and sign regardless, they should be allowed - yes, allowed - to fail, lose their home and be sent on their way. That, to the best of my knowledge, is how the mortgage industry is designed: you promise, on the collatoral of your home, to pay on time, and in full. When you don't, you forfiet your home. Just one thought.

As for the multitude of your suggestions - they sound like so much Democratic tongue whapping. If there is so much need to help, and regulate, why has the system worked as it has for so long? Why the sudden need? And why not ask wealthy Democrats - who should line up for this one - just open their pockets and help others out?

I've got 60,000 in college debt, I'll take a check.

Clinton Support

Mort,

Since learning of your support for the Clintons, I now realize that your judgement and morals are seriously impaired, and therefore will not be reading your columns anymore.

Anyone with an iota of good judgement and common sense knows that they are both liars from their Arkansas days. Hillary lied about not knowing about Bill's

affairs when he ran in1992. Lying is a way of life for them, which they justify as being part of the rough and tumble of politics. Now she is hoping that some kook out there will take Obama out so she gets the nomination. This is a new low even

for a slut like Hillary. You need to seriously re-examine your political alliances.

Here, here! I agree - though the medicene at this point would kill us all. Would have to be weaned down semi-slowly. I'm for the gold standard. Men are greedy and will always find a way to cheat their follow citizens out of more $. Either that or MORE govt. regs. - which I disagree with. Get real these foxes can never be let lose in the hen house.

More Phony Baloney

Mr. Zuckerman,

I am extremely disappointed and disheartened to read your article and recommendations. Your 7 reforms would not do it. These greedy people and institutions need to burn, they need to fail, they need to lose it all. The taxpayer should not pay a dime, the Federal Reserve should be abolished, and the country return to the gold standard. Trying to regulate a system that does not work is like trying to lasso a steer with a noodle, get real Sir, and think up something original.

Why reward failure?