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Capitalism, or not anymore?

So while enjoying a nice weekend with family in Tahoe...my gfs bro in law actually made a really good point-We dont live in a capitalistic country anymore. With that being said, ill give a great great example: housing and banking industry.

A capital world is someone like us starting a business with a risk to lose everything if we fail, if we fail they could levy our bank accounts, take our homes, etc.........
So, the banks should be the same correct? No.
When they give out loans (some legit some not), they are taking a risk to make money as a business does. but what happens when the economy tanked, and people foreclosed? They got bailed out. Now keep in mind, they gave out fake money to someone to buy a home, got great return on their investment for how ever long before someone foreclosed, then they faulted on the repayment, now the bank got a bailout of money, and they are also able to take tax write offs from the gover ment too....so they sieze the home, put back on market, and make another loan.......WHERE IS THE RISK?

Comments

  • wwesternwwestern Posts: 1,397 ✭✭✭
    LOL capitalism has been dead in America for a long long time. As soon as the government sticks their hands into private buisness capitalism is no longer the term for what is happening.
  • Joeyjoe21_8Joeyjoe21_8 Posts: 2,048
    agreed. its just sad we live in a country which is no longer found on the same principles it once was.
  • blurrblurr Posts: 962 ✭✭
    I agree somewhat, but what do you suppose would have happened if all of those banks that ran out of money just shut down and said "Sorry we don't have your money you had in your savings account anymore, its gone!"

    With that being said, I believe the bailout was crap and its a crap system when banks can foreclose and get the house back, and can RESELL IT again, but what can you do. I'm all for MORE banking industry regulations, which is why I vote how I do. I'll leave it at that.
  • xmacroxmacro Posts: 3,402
    blurr:
    I agree somewhat, but what do you suppose would have happened if all of those banks that ran out of money just shut down and said "Sorry we don't have your money you had in your savings account anymore, its gone!"

    With that being said, I believe the bailout was crap and its a crap system when banks can foreclose and get the house back, and can RESELL IT again, but what can you do. I'm all for MORE banking industry regulations, which is why I vote how I do. I'll leave it at that.
    FDIC insures most banks for up to $100,000 - during the recession, the limit was increased to $250,000 (which is why, if you have a lot of money, to diversify it across multiple banks, so you're covered). If the banks had been allowed to fail, almost no one would've lost their savings
  • VulchorVulchor FloridaPosts: 4,806 ✭✭✭
    The country has NEVER been truly a capitalist society-----so this is nothing truly new.
  • fla-gypsyfla-gypsy Posts: 3,024 ✭✭
    I agree with Vulchor, a true capitalist economy is one in which means of production, the goods produced, and the distribution of those goods would be solely and wholey owned and controlled by private entities without any govt interference whatsoever. A Facist economy is one in which the means of production are privately owned but what is produced and the distribution of those goods are controlled by the govt. A communist economy is one in which the means of production, the goods produced, and the distribution of those goods is solely controlled by the govt. Very few economies fit into only one category, most are a hybrid of one or more.
  • lilwing88lilwing88 ChitownPosts: 2,812 ✭✭✭
    Vulchor:
    The country has NEVER been truly a capitalist society-----so this is nothing truly new.
    +1. A free-market Republic is a better label, IMHO.
    Guns don't kill people, Daddies with pretty daughters do…..
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