OpinionFuture global financial crises could be prevented by teaching people not to spend more than they earn.
      – BorgClown, 2008-10-20 at 00:19:35   (3 comments)

On 2008-10-20 at 00:22:51, BorgClown wrote...
I disagree. This was caused by corporate practices. The more money you have, the more you play with the system to earn more. Even if normal people behaved, the governments and corporations can fuck things up alone.
On 2008-10-20 at 13:51:36, Lee J Haywood wrote...
You have to remember that money is a human invention, and the form it takes is entirely artificial. For example, there are currencies that lose value after a month and people are thus forced to spend their money within their community rather than hoarding it - which both keeps money in circulation and makes it easy for others to stay in business. The current problems are caused by the lack of oversight and the failure of regulation to ensure that risk evaluations are sensible and based on real, physical assets. Money can be bought and sold in the form of debts and loans as if they were real commodities, but if the profits made on these financial 'products' are not linked to real-world items, the profits don't mean anything. This doesn't help those of us that have to live in the real world.
On 2008-10-20 at 20:59:37, BorgClown wrote...
The mortgage snowball started that way: Financial institutions buying and selling debts (non-existent money) for a profit. The stock market craze is more of the same problem: Imagining money and selling it to someone else for real money.