'You Can't Lose What You Never Had'

Posted by ProjectC 
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<blockquote>'You Can't Lose What You Never Had

Marc Faber and Bogle are correct that a collapse is coming. However, you can't lose what you did not have. Capitalism did not fail, government regulation as it inevitably does, failed.

Fannie Mae, Freddie Mac, FDIC, Social Security, government bailouts of failed institutions have nothing to do with capitalism. Nor do tax breaks that favor housing over rent, nor does a government running HUG or FHA to support social goals.

The SEC took a perfectly fine credit rating system based on actual performance and turned it into sponsorship of Moody's, Fitch, and the S&P. After SEC sponsorship, the "Big Three" got paid on the basis of the volume of business they did instead of how accurately they did business. (See Time To Break Up The Credit Rating Cartel) for details.

Virtually everything that failed can be traced back to government intervention into the free markets, especially the creation of the Fed itself.
- Mish, Death of the 'Soul of Capitalism', October 21, 2009</blockquote>