Friday, October 10, 2008

Ayn Rand - How bad romantic fantasy took down the Global Economy

Back in the late nineties concern grew about the Derivatives markets. You can read about in this NY times article. What is shocking to me is how we Christians allowed ourselves to be so hoodwinked into supporting a Godless and clearly unbiblical as unfettered Free Market System. Do not misunderstand me, I am not a socialist in the least. The picture that is now emerging is Alan Greenspan, influenced by his Randian philosophy, push for Derivatives Market like Credit Default Swaps and the rest to remain unregulated. Consistant with his philosophy, which values greed in the form of "rational self interest," he argued and won. Both Democrates and Republicans joined in an unholy allience. So the Biblical passage of 1 Tim 6.10 came true. The derivivate market grew to dwarf the stock market, bond markets, and securites market combine. Thnk about that for a moment. The prymid scheme grew larger that actual production. Now the biggets problem is the vipers don't trust each other (imagine that) and the economy is sinking faster that Titanic. Greed kills. In the next few days, I will be taking apart Ayn Rand's philosophy.

3 comments:

Anonymous said...

Atlas Shrugged is a work of genius. No one should ever have to defend their success as long as it was honestly earned. And no one should be compelled by looters to turn over close to half their earnings in the name of taxes. Those who expect something for nothing are the thieves and the ones who should be demonized. If government stayed out of the picture, communities would take care of those in need. Communities are in touch with their own. It is when government, a faceless creature, steps in and plays Robinhood. Stealing from the haves and giving it to other faceless people who say they are the have nots. But how do we know? How do we judge? Why should we accept the judgement of the irresponsible politicians who have their own agendas? Why should we think that the have-nots are those who we would judge worthy of receiving our hard-earned dollar? Is there anyone out there that actually believes in the government? The government that is full of fraud and corruption? The government that is run by inept people from top to bottom? Atlas Shrugged is written with the knowledge of human nature and how a society evolves. There is nothing illogical in this epic novel. Read it and understand the truth. Don't drink the Kool Aid of Socialists.

Tito Tinajero said...

I will not drink the Kool aid of socialism. I agree that the Government cannot be the solution to the human condition. Neither will I drink the Kool aide of Ayn Rand, for the same reason. One of the major reasons this country has been so successful is we understood the needs of checks and balances. We purposely chose to separate power because of a Christian understanding of human nature. We took up the polity of the Presbyterian church of three branches of government because human nature is corrupt. We can trust "enlighten" souls to govern, whether those souls are government or capitalist. Again understand that this crisis was caused by Randian principles but to the test in the real world and not in a failed Hollywood hack's romantic Science Fiction.

Weird said...

First, I've not read Atlas.

You are right, sort of... Some businesses have taken advantage of certain market conditions. However, those market conditions were created by the Federal Government's interference in what I call a "federally-mandated free market". What we have in America hasn't been a true free market in our lifetimes. A real free market wouldn't have supported the existence of sub-prime loans and the rest of this fiasco; what we are witnessing are markets controlled by government and the federal reserve.

Here's a simplified breakdown. The Feds brought this meltdown with socialistic programs starting with FDR and the creation of Fannie Mae which put government into the marketplace as a competitor. Carter's Community Reinvestment Act then became the vehicle that was later compromised by Clinton in 1995. Clinton's administration opened the doors to today by allowing low-risk garbage to be "securitized". The Government encouraged this in the name of socialized charity. The Federal Reserve supported this and made interest rates favorable because they represent the banks that make the money from the situation.

http://query.nytimes.com/gst/fullpage.html?res=9C0DE7DB153EF933A0575AC0A96F958260&sec=&spon=&pagewanted=all

http://www.youtube.com/watch?v=1RZVw3no2A4 (slanted, but covers the bases)