Milton Friedman On Greed - Phil Donahue Show (1979)

Friedman on poverty, greed, free markets and Capitalism.  Too bad he's not around anymore to explain away the ideological failure of free markets aided and abetted by the captured ruling class. The Kleptocracy won again, Miltie.  Did Friedman imagine and calculate for the distortion of free markets when greed and control of regulators could mean a $3 billion paycheck for John Paulson.  And did greed propel Paulson to collude with Goldman Sachs to create 'shitty CDOs' that were designed to, and succeeded at, failing.  Or were they just having some fun with Timberwolf and Abacus.

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Goldman Hearings boiled down to 5 minutes...

Mash-up clip.  Seven hours in 5 minutes.

Further reading...

How Goldman Sachs Created 'Shitty' CDOs, Sold Them To AIG, Forced AIG Into Bankruptcy, Got A $20 Billion Bailout, Paid Themselves Billions In Bonuses, And Watched As Tim Geithner Covered It All Up

Nobel Prize Winning Economist Milton Friedman On Lord Bernanke: "My Preference Would Be To Abolish The Federal Reserve" (Video 2006)

Comments

[DailyBail]

http://www.huffingtonpost.com/2011/02/08/nycs-billionaire-milkman_n_820436.html

NYC's Billionaire Milkman

[DailyBail]

How Goldman Sachs Created 'Shitty' CDOs, Sold Them To AIG, Forced AIG Into Bankruptcy, Got A $20 Billion Bailout, Paid Themselves Billions In Bonuses, And Watched As Tim Geithner Covered It All Up

http://dailybail.com/home/how-goldman-sachs-created-shitty-cdos-sold-them-to-aig-force.html

[DailyBail]

Dead Presidents Vs. Abacus: Comparing the Morgan and Goldman CDO Cases

http://dailybail.com/home/dead-presidents-vs-abacus-comparing-the-morgan-and-goldman-c.html

[DailyBail]

UPDATE: Goldman Sachs Criminal Investigation

http://dailybail.com/home/update-goldman-sachs-criminal-investigation.html

[DailyBail]

« Are Goldman’s ‘Big Short’ Denials Short On Persuasiveness? (ProPublica Reports) »

http://dailybail.com/headlines/are-goldmans-big-short-denials-short-on-persuasiveness-propu.html

[DailyBail]

Dead Presidents v. Abacus: Comparing the Morgan and Goldman CDO Cases

http://blogs.wsj.com/deals/2010/05/12/dead-presidents-v-abacus-comparing-morgans-and-goldmans-cdos/

[David Dyer]

"Friedman on poverty, greed, free markets and Capitalism. Too bad he's not around anymore to explain away the ideological failure of free markets aided and abetted by the captured ruling class."

Ideological failure of free markets? Fortunately, Miltie is still around to challenge your assertions. Pick up a couple of his books and read them.
Claiming that it is a failure of the free market that some people are able to criminally distort and manipulate it is ridiculous. The failure lies in the false promise of goverment to regulate these organizations leading to the abdication of individual responsibility and oversight on the part of investors. When investors don't have a taxpayer-provided bailout fund to cover their losses they take responsibility for their investments and the credibility and integrity of the people they invest with. Subsequently, it becomes extremely difficult for crooks on Wall Street to commit fraud on such a grand scale. They never could have done it without government help!
Implying free markets and capitalism are at fault for the financial meltdown is like blaming the game of poker for the losses of the players due to a cheater in the game!

[Nate]

David Dyer is right on the money. You can't blame the free market for creating problems that were caused by intervention in the free market! I thought the Daily Bail editors were much more enlightened than to be taken in by such a backwards, statist fallacy.

[DailyBail]

david and nate...i should have been more clear...this is not an attack on free markets...this is a demonstration of how greed can destroy free markets if not properly policed...even greenspan admitted that markets were not self-policing as the theory assumed...when billions are at stake, the system is distorted...

you need punishment and aggressive regulators, not control...this is the point i was making...i most certainly do not believe in statist control over anything...or intervention in markets for that matter...but friedman and greenspan believed that markets were self-regulating...and we have learned that not to be the case...

[David Dyer]

How can you "not believe in statist control over anything" but call for aggressive regulators in the same paragraph? When Friedman and Greenspan speak of self-regulating markets, I believe they are not referring to the brokers and bankers on Wall Street regulating themselves, but the investors self-regulating the activities of the Wall Street bankers with whom they have invested their money.
My point was that government regulation lulled investors into a false sense of security which allowed the foxes to raid the hen house, so to speak. Expecting a government agency like the SEC, staffed primarily with former Wall Street bankers and future wanna-be Wall Street bankers, to pay close attention to what their colleagues are doing can only lead to periodic financial meltdowns such as the current one.

[DailyBail]

David...I never have sufficient time to comment in detail...i agree with you...I just didn't do a solid job of explaining it...by aggressive regulators, i meant a tough and vigilant SEC, same for Sheila and the FDIC, and GSE regulators (federal home loan bank board) as well...and I did a poor job with my quick write-up for this video...i'll admit that...