Weekend Economists Revelations and Reviews April 26-28, 2013

[DemReadingDU]

43. Mike Shedlock: Is Capitalism Killing Our Morals and Economy?

4/24/13 Mike Shedlock: Is Capitalism Killing Our Morals and Economy?

In one of the most hopelessly incorrect collections of drivel that I have ever seen, Paul Farrell of MarketWatch writes Capitalism is killing our morals, our future.
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Yes, something is trapped in our brains, or rather the brains of Farrell, Harvard philosopher Michael Sandel, and those who think like them. The first problem is Farrell and Sandel do not know what free market capitalism is. We certainly do not have it. The free market would not have fractional reserve lending. The free market would have gold and silver as money.

The primary reason for the major disparity in wealth is bank leverage of fiat money created at will via fractional reserve lending. The most redeeming feature of capitalism is failure, but the Fed has a moral hazard policy of "too big to fail" that promotes massive risk-taking.

There would be no Fed in a free market and there would be bank failures, not bailouts on the backs of taxpayers. In a free market, money would not be inflated at will, nor would credit be handed out to anyone who could breathe as happened in the housing bubble.

Anyone who equates what is happening now with "free market economics" has something much smellier than mush for brains. So does anyone who thinks the socialist model would serve us better. If the socialist model was better, and more regulation and rules were the solution for everything, France would be the booming leader of the world economy.

http://globaleconomicanalysis.blogspot.com/2013/04/is-capitalism-killing-our-morals-and.html