I dunno. Not politicians, not the people who were in the system around the last financial crisis and not their proteges. A local Plumber's Union for all I care, although I'm sure a market could find better alternatives if it were left alone to function. I suppose my assumption is that we should try a new community of people every time the current community causes a trillion dollars in damage. If my plumber caused a trillion dollars in damages I would consider going with a different plumber next time. The current crop of managers who get to decide what the financial system does are the only community of people (apart from politicians, maybe) where there is noncontroversial proof that they are likely to cause a trillion dollars of losses through poor decision making and bad models. When companies muck up that badly people should lose money, not get to drink from a money hose as in '08.
From Wikipedia [0]:
September 29, 2008: The House of Representatives rejected the Emergency Economic Stabilization Act of 2008 instituting the $700 billion Troubled Asset Relief Program. In response the Dow Jones dropped 777.68 points, its largest single-day decline.
^ That sort of thing is beyond stupid. That inhibits the capitalist system from properly bankrupting owners and purging incompetent managers. A 700 point market rises for the owners because taxpayers will fix things and all the managers will eventually get a bonus from having a positive impact on stock prices. This is the opposite of free market capitalism, and the fact that it happened over a short timeframe doesn't change its importance to the long term incentive structure of the system.
I dunno. Not politicians, not the people who were in the system around the last financial crisis and not their proteges. A local Plumber's Union for all I care, although I'm sure a market could find better alternatives if it were left alone to function. I suppose my assumption is that we should try a new community of people every time the current community causes a trillion dollars in damage. If my plumber caused a trillion dollars in damages I would consider going with a different plumber next time. The current crop of managers who get to decide what the financial system does are the only community of people (apart from politicians, maybe) where there is noncontroversial proof that they are likely to cause a trillion dollars of losses through poor decision making and bad models. When companies muck up that badly people should lose money, not get to drink from a money hose as in '08.
From Wikipedia [0]: September 29, 2008: The House of Representatives rejected the Emergency Economic Stabilization Act of 2008 instituting the $700 billion Troubled Asset Relief Program. In response the Dow Jones dropped 777.68 points, its largest single-day decline.
^ That sort of thing is beyond stupid. That inhibits the capitalist system from properly bankrupting owners and purging incompetent managers. A 700 point market rises for the owners because taxpayers will fix things and all the managers will eventually get a bonus from having a positive impact on stock prices. This is the opposite of free market capitalism, and the fact that it happened over a short timeframe doesn't change its importance to the long term incentive structure of the system.
[0] https://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80...