alt.politics.economics

On Aug 28, 4:25 pm, "saroman0...@ "
wrote:
> On Aug 28, 3:08 pm, PeterL < ...@ > wrote:
>
> > On Aug 28, 12:59 pm, Vide...@ wrote:
>
> > > /ap/070828/ ?.v=11
>
> > > AP
> > > Fed Hoped Market Would Right Itself
> > > Tuesday August 28, 2:57 pm ET
> > > By Jeannine Aversa, AP Economics Writer
> > > Fed Saw Danger of Credit Crunch, Hoped Market Would Return to Normal
> > > Without Intervention
>
> > The market is righting itself from an over-valued condition. It's
> > working as advertised.
>
> Please explain how a so-called "free market" can be overvalued or
> undervalued. Accepting the definition of a free market as a "market
> where the prices of goods and services is arranged completely by the
> mutual non-coerced consent of sellers and buyers, determined generally
> by the supply and demand law with no government interference in the
> regulation of costs, supply and demand" ( /wiki/
> Free_market) precludes any possible imbalance. Therefore, one must
> conclude that free market capitalism does not exist and that any
> imbalances in the market place are created through manipulation;
> manipulation being the way the rich get richer and the poor get poorer
> in America.

correct, but the dogma that is practiced, and parroted by the
faithful is called free, or liberty. that is to keep proper government
regulation from interfering in their gravy train.
if there were no government regulation, the same problems would
arise. just look at the period from 1870-1895, it was one long bust
with a few boomlets, and all of the wealth went to a few. hardly a
ringing endorsement for self regulating markets. they were manipulated
by the wealthy and powerful.
all regulations that followed were to keep the wolves at bay.