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This American Life has a very informative show on the financial crisis, with a particularly frightening section on credit default swaps that lays bare just how outright idiotic it was to let this market go without regulation (bipartisan blame on that one, btw – it passed the Senate 95-0).

Do you ever get the feeling that life is an unwilling competition between people who see money as a means and those who see it as an end? Would it be a worthwhile societal goal to figure out a way to sandbox the activities of the latter so that they have minimal impact on the lives of the former?


Yes, I think that would be worthwhile. But capitalism would probably implode if anyone ever succeeded. Are you secretly a communist?

Posted by Chinkerfly on 6 October 2008 @ 3pm

Wait, didn’t capitalism actually just implode?

I’m not a communist at all. I just think capitalism should be regarded as a tool for efficiently advancing society rather than as a tool for the personal enrichment of those who treat it like a game. You’re an Ayn Rand fan, though, so I’m sure you disagree :)

Posted by Jason on 6 October 2008 @ 5pm

Hey Jason,

Have you seen this flick yet?

http://video.google.com/videoplay?docid=7065205277695921912

Pretty interesting, takes a bit to get going, but is really well done, definitely worth the 2 hours of your time.

Posted by Cody Irons on 6 October 2008 @ 8pm

Hmm, that one seems a bit conspiratorial. I didn’t watch the whole thing, I stopped shortly after the bit about the legal case on the foreclosure that was overturned.

Money is just an agreed upon symbol. It doesn’t matter much if the underlying thing money is based on is something real like gold or something “fake” like government fiat. As long as people continue to use it to exchange goods and services, it’s doing what it’s supposed to be doing. If people become afraid to exchange, it doesn’t matter what money is backed with – gold doesn’t do much good in a famine.

Posted by Jason on 6 October 2008 @ 10pm

Yeah forgot to mention that conspiracy rating=high; on this one. But about your final paragraph on the original post, about the ‘means’ and the ‘end’.

Depending on how you define those individuals that see it as an end. The only way you can effective ‘sandbox’ them would be to simply get out of the sandbox, take your shovel and pail go home. I think we are all ‘in’ the sandbox. It’s just a matter of trying to minimalize the damage done when those trying to utilize your money as the ‘end’ seriously F* up …aka… go bankrupt or make your 401k drop 25%. Just take your money and bury it in a jar in your backyard haha.

Posted by Cody Irons on 7 October 2008 @ 8am

Don’t get me wrong, I love a good conspiracy theory, I just didn’t have time for 2 hours of one last night.

Yeah, that last paragraph in my post was a little sloppy. Asking if it should be a societal goal is a little offbase, as it’s already something of a raging debate in the context I was thinking of: universal healthcare, better public schools, more access to higher education.

The things that middle class families spend most of their money on are healthcare, education, and housing (which can be explained partly as parents competing for good public schools). If we can cut the amount that the typical family has to lay out for these things, we are sandboxing them quite a bit.

Posted by Jason on 7 October 2008 @ 10am

Jason, this was really helpful. Thanks!

Posted by Charles de Granville on 12 October 2008 @ 12pm