Monday, May 19, 2008

Republicans Are Lying, Again

"Unquestioning belief in the economy’s self-correcting mechanism is the reason many Republicans don’t want to do anything to prevent foreclosures."

Taken from NYTimes article at

http://www.nytimes.com/2008/05/19/opinion/19mon1.html

For the markets to "self-correct," all participants must have all the information they need to make rational decisions.

Actual conditions do not begin to approach this standard.

Another problem that helped to bring about the current disaster is that executive compensation schemes encouraged CEOs to take huge risks for their own immediate gains regardless of the enormous risks to the stockholders of their companies, for example E. Stanley O'Neal at Merrill Lynch.

Regulation is needed. Republicans must know this. They are just being disingenuous.

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