Skip to comments.Failure is Part of Capitalism
Posted on 05/15/2012 12:23:25 PM PDT by Kaslin
RUSH: Have you noticed how the media, the Democrats, are going nuts over Jamie Dimon and, what is it, the $2 billion trade loss at JPMorgan Chase? You know, I really do believe because capitalism has not been taught, so many people do not understand that winning and losing is part of the deal. When you have freedom, winning and losing is part of the deal. JPMorgan Chase still made a profit, despite the $2 billion loss in that one unit. But everybody now wants to get rid of Dimon and they want more regulation. And this all happened after Dodd-Frank. This all happened after a bunch of brand-new federal regulation.
But I really think that what this shows is that people of a certain age don't understand that in freedom you win and lose, and when you lose, you come back, you try again. But so many people in our culture seem to want to take any chance of loss out of the equation even if it means that everybody is simply living a life of mediocrity, that there is no excellence. Because you can't get to excellence without failure along the way, and failure simply doesn't want to be tolerated. The moment there is failure in an institution or in an individual here comes a bunch of leftists saying, "Well, we gotta get the government involved." And I know people who say, "Well, they haven't done it in sports." They are doing it in sports. They are doing it in the National Football League.
That's what this really is all about when you get down to brass tacks. And one of the reasons that sports is in some disfavor right now is 'cause it is totally merit based, and there are wins and losses, and there's personal failure and there's recovery, redemption and triumph and all these things that are part of freedom that people want to take out of the equation now, as though somehow it's intolerable, unaccepted because of the pain and suffering and the risk. And the idea that life can be painless, the idea that life can exist without suffering is ridiculous. It's absurd. But there are people with those motivations, and they do not have one foot, one toe grounded in reality. You know, in my case, I mean you could never make it to the Hall of Fame if you're afraid of failure.
products of youth baseball and soccer leagues where they quit keeping score...
A game with no losers is also a game with no winners.
Only the shared misery of mediocrity.
I’ve yet to see any mention of who MADE two billion. If “we” want the government to ensure that JPM can’t lose $2B, we’d also be ensuring that the other party or parties didn’t make $2B.
It’s all about control, they could care less about loss or protecting the people. Like I posted a million times: Study New York city and it’s Despot Mike Bloomberg. He started out small now he has absolute control over everything. New York city lives under Despotism and the liberals there really do not care. They are told what to eat, what to drink, how to live, where they can live, when they can speak, how they can speak, what they can own, what they can’t own, and the Constitution? Forget about that. The Despot only brings that up when OWS terrorists or Muslims looking to bring grief to the 911 families are involved.
Failure is the WHOLE of Socialism.
Greece is experiencing massive bank withdrawls as we speak. Let the too big to fail....fail.
Worse yet, Investment Bank has to ask Government Bureaucrat “Can I make this trade?”
“You know, I really do believe because capitalism has not been taught, so many people do not understand that winning and losing is part of the deal.”
Yes, and Rush is one of the people who skipped class and harbors the illusion that he’s mastered the subject.
The problem with JP Morgan Chase is that it doesn’t own its own losses, it passes them on the rest of us. FDIC is one way that this occurs but there’s more than that involved.
If JPMC simply went under and took its stockholders with it then there would be no reason to get get excited about what it has been doing.
But banking is different from other industries, and when banks do things that are remarkably stupid they can take down the rest of the economy with them. Our Great Recession began in the banking system, something that rarely happens, but when it does it’s always serious.
The Great Depression was another event that had its roots in the banking system. To prevent a recurrence Congress enacted the Banking Act of 1933, popularly known as the Glass-Steagall Act. Over the next 60 years we had recessions, but none like that of the Great Depression and none that began in the banking system.
The Glass-Steagall Act served us well. Over the years it was chipped away at, but it wasn’t abandoned wholesale until the Bill Clinton administration, when the Gramm-Leach-Bliley Act of 1999 did it in. G-L-B, the Financial Services Modernization Act of 1999, opened the door for banks to do things that Glass-Steagall had prohibited them from doing. In the ensuing decade we experienced a NASDAQ bubble, a mortgage bubble, and the biggest recession since the Great Depression. I don’t think that it’s a coincidence.
So contra Rush, there’s good reason to be concerned about what JP Morgan Chase has been doing. There’s a reason to want something resembling Glass-Steagall to be enacted to protect the real economy from being wrecked by speculation in the financial economy. Unfortunately nothing of the sort has been done and banks are free to gamble with derivatives just like they were doing during the mortgage bubble.