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A preview of the Economic Summit with Steven Pearlstein of "The Washington Post"
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futurevisionaries 04/22/2011 03:43 PM Report
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dberdes 11/15/2008 12:59 PM Report
Mr. Pearlstein is another classic example of a left-winger. End speculation as we know it? Why don't we just shut down the entire free enterprise system too? Speculation provides valuable liquidity to the marketplace and if commodity users need to have a known price for the materials they buy, they too can hedge themselves in the marketplace. Southwest Airlines did just that when they locked up long-term oil prices by hedging against rising oil prices using the futures/deriviatives market.
Yes, there are losers in these markets but also winners too. That's why it is called the free market. Yes, some regulation is needed to provided a level playing field for all participants. But end speculation? Give me a break!
Snazel 11/14/2008 07:26 PM Report
I don't see any entity having enough authority to make China revalue their currency, or stop consumers and companies from borrowing too much. So while Pearlstein's idea is valid, I can't see any international entity having the dexterity and alacrity to deal with the situation.
I wonder if our technology and communications have grown so fast, that our business acumen hasn't caught up. It is an unpopular opinion, but I wonder if a serious recession is necessary to teach business leaders, how to adapt, and thrive in the 21st Century business climate.
REMant 11/14/2008 05:24 PM Report
We don't need a "global" lender of last resort. We'd be better off with NO lenders of last resort, period. The problem is the creation of credit ahead of the productivity to support it, in other words, ahead of savings. In short the entire central banking concept needs to be rethought, including the fractional reserve requirement. No easy money, no problems, no need for regulations.