Friday, July 06, 2007

Wide Shot Pattern

Mike Shedlock has a Post up which examines three Issues quite well. The Ohio Attorney General has filed suit against Credit-rating agencies, who contend that they do not have to use due care in issuance of what they term Opinions. Question: If their contention is upheld, will they not be required to register as Advertising Agents? The Mortgage-bundling business is bad, and they are trying to kill the Messenger again–this time Implode-o-Meter; which only accounts the evaluations of the Crisis-Conscious, truly reminiscent of suppression of Free Speech. Alaska wants to swing back to the 1920s, and advocate Speculation Investment by borrowing. I hate to be a Spoil-Sport, but the SEC would have had to step in on this one if Bart Stedman had not proven sufficient bulwark.

Mises.org seems to have chosen today to start a crusade against Regulation. This Post by De Coster serves as a prime example, with implication that New York would regain its financial position if another Board was established to get rid of the ‘regulatory nets’ which have ensnared businesses. I must first make the Statement that few New Yorkers feel any real sense of false imprisonment from current practice, and second; any deregulation will lead to greater endangerment to Investors, followed by later condemnation of businesses after these real Dangers are actualized.

One very real Error of the Contributors of Mises.org comes in the intent of their overall message, which is the widespread redirection of the flow of Profits from the general economy into Profit-making venues for the Money managers. Such activities have always attempted to introduce another Profits Draft mechanism between Business Profits and Investors. Over-manipulation of Production Profits drains real financial equity from both Production and Investment, destabilizing both Production Schedules and the Value of Money (a modern version of Debasing Coinage through implementation of artificial Drafts). An old Hunter would call it too much Powder, and way too light on Shot. lgl

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