Too Free A Market

I am fairly new to this economic “thing”. (The prove is that I am calling it “thing”) But I know that one doesn’t get democracy by leaving things to “the experts”. In fact, that is precisely the opposite of democracy: leaving the complicated stuff to the ones “in the know” hoping they’ll rule us with a fair hand because we, the ignorant masses, cannot possibly comprehend what is going on and make decisions about it.
So there I was, taking my first steps into this thing we call “economy” when “oops a daisy!”, here comes an economic crisis and all my knowledge is put to test. And so the other day, I came up with a really funny economic thought. Well, as funny as economic thoughts can be.
You may have noticed that this supposed economic experts keep on repeating that the cause of this crisis was the lack of “regulations” to the financial market. That’s the magic word, “regulations”. Ok, fair enough. But then I thought, hang on a tic. Weren’t “regulations” supposedly NOT ALLOWED within a “free market” economy? I’m pretty sure that’s correct. The right wing free market fundamentalists speak of nothing else but “letting the free market free”. Furthermore, the liberalisation of the financial market came precisely from the reagonomics of the 70s and 80s, in whicn the “free market” speech was all we heard about. So let’s see if I get this straight:
The economic system in place, the “free market” is based on the assumption that regulations are a no no. And so, the financial markets, like the rest of the economy, should run free like the wind.
But then comes an economic crisis and the economic experts, the ones who preach the wonders of the “free market”, tell us that the problem was the excess of “freedom” of the financial markets.
As we say here in the internetz, W00T???
Dude, make up your mind. Is the free market the solution or the problem?
I looks to me as if the beneficiaries of the free market AND it’s very designers are practically recognizing that their beloved system doesn’t work. Well, of course they’d say that. Because what they are asking now is a big hand from the state, something which is only allowed within “Leftist” systems. You know, those in which everything in the economy is regulated. So the talk of “lack of regulations” speech is code word for “we never thought the free unregulated market would work, honest!. Can you help us out please?”.
What is truly astonishing is that the left isn’t doing anything about this. WAKE UP, PEOPLE! They are admiting their system is rubbish, even if it’s only to rip the benefits of crossing momentarily to the other side. This is our oportunity to really change things! What are we all waiting for?


7 Responses so far »

  1. 1

    pisaquaririse said,

    “Free market” is one of the most *annoying* economic terms, like, EVAH.
    1. Doesn’t really work and 2. You say the word “free” and Americans turn their brains off.

  2. 2

    marytracy9 said,

    Pisaquari, word.

    And I think I know what you mean by “americans turning their brains off”. I simpathise with you.

  3. 3

    Polly Styrene said,

    Once upon a time young Mary Tracy there was a woman called Margaret Thatcher. Who deregulated the financial markets. In Ye Olden days, before you could get a mortage for instance, you had to save money with the building society you wanted to borrow from and prove your creditworthiness.

    But then (Until quite recently) as a result of Thatch’s legacy you could just pop along somewhere and borrow five zillion times your house’s value/annual salary with no problem. Similarly in the US where the ‘dream’ of home ownership was pushed to people who couldn’t afford it.

    What went wrong? – simple. The Russian oligarchs (yeah I know, former communists) who were providing the backing for all this lending withdrew it. Because they realised they were lending money that might not be repaid.

    Then the trouble started.

  4. 4

    marytracy9 said,

    Polly, it’s true that I’m young, but I know only too well who Maggie Thatcher was. Oh, if only you know the story of my life!

  5. 5

    MT9 tell me you didn’t personally know the woman. Ewe, that’s like knowing Reagan :(.

  6. 6

    marytracy9 said,

    Well, no I didn’t, AW, I was quite wee back then. But her decisions had a big effect in my life. You know, like when politicians screw everyone but themselves. That kinda thing.

  7. 7

    “You know, like when politicians screw everyone but themselves.”

    Yep. :(.

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