German Finance Minister: Dumb as a Rock

May 20, 2010 at 13:02 (Economy, General Stupidity, News)

Obama is dumb as a post already, so I couldn’t use that one.

Hey Mr. Germanfinanceministerguy – the reason things are out of control is because you and your socialist buds have OVER regulated, not under regulated. I love the way big government types create problems with regulations and then swoop in and say that the problems are due to not enough regulations. The problem is that socialists are at heart cowards – they are afraid of failure. Afraid of consequences of their actions, etc. They want to use the so-called power of the government to try and make it all better. But I have news for you. Only ONE man made it better, and he actually said not to expect it here.

The housing crisis here was a direct result of the government forcing financial institutions to lend to high risk borrowers. Borrowers who couldn’t and ultimately didn’t pay back the loans. The banks knew it and tried to invent new ways to use the BS to make money, hence you got credit default swaps and derivatives and all that crap. When you add in the fact that as these stupid governments grow, they also spend like it’s going out of style, then you get into trouble. The ultimate problem is that, while some regulation is probably needed, the majority are useless and tend to make things worse, not better.

The man at the eye of the financial storm that has engulfed the euro has learnt to be patient after 20 years confined to a wheelchair. But Wolfgang Schaeuble, Germany’s finance minister, is also a man in a hurry.

He wants urgently to rewrite the rulebook of the euro zone to prevent any such crisis happening again, and at the same time to revive the momentum of international negotiations on tougher regulation of financial markets. He has returned to the idea of an international financial transaction tax, to make financial institutions share in the costs of the crisis, even if it can be agreed only inside the European Union.

He admits that the greatest problem affecting the markets is one of trust in the ability of the EU, and especially the 16 members of the common currency area at its heart, to bring their debt and deficits under control as they have promised. “That is the task we must perform,” he tells the Financial Times aboard his Luftwaffe Challenger jet bound for Berlin. “But that doesn’t alter the fact that financial market regulation is also necessary.

“I’m convinced the markets are really out of control. That is why we need really effective regulation, in the sense of creating a properly functioning market mechanism.”

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1 Comment

  1. Emo said,

    I’m convinced the markets are really out of control. That is why we need really effective regulation, in the sense of creating a properly functioning market mechanism.”

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