Were We Ever Really 'Capitalist'?

" I we're live at mount Rushmore with a final touches are being put on Barack Obama's face after just 72 day. He's in office. But but it sure that's actually a pilot minutia I. And Alan Colmes ladies and dominant thought."

" It look at their. Bad and that can't certainly aren't of that actually April -- blue -- and -- and our. The -- also wandered up we all need to change the way we think about socialism. The times not saying directly that way to start wearing berets in calling each other comrade but the times noting that free market area. Mathematical models and hostility to government regulations so rain around the country. The belief that people make rational economic decisions the market automatically adjust to respond to them so prevails. I I -- a sea change in public attitudes welcome back economist James Galbraith he has the other predators they got conservatives abandon the free market. The -- liberals shed two Alan Colmes the course. Don't -- houses here on out the gangster himself bad names without you know the times -- Did did they have a point though that we are abandoning free market principles in this country."

" All the Bush Administration abandoned free market principles and governed on behalf of a small group of of its major clients and use state power for their benefit so we're a long way. From free markets and that they -- principled conservatives have done that for years."

" Doctor Robert -- and -- not -- that's the big problem I always have with this corporate just the type of government that the Republican Democrat regime continues to take us down. It's always beneficial to the most politically connected the biggest businesses. And then if that's typical keynesian economic theory though. I thought that she was born keynesian economic theory I can't get figure out one or the other here."

" I you know I think it's possible to have a government Clinton. The governs in a principled way in the public interest but -- side of the public interest this is the big idea here. I don't think you can get away from government I think that's unrealistic in the modern world. The greatness think no American the government work."

" He'll let out a letter written about -- like analysts say here but what a shock so many great and it it has all this spending."

" All these programs is so much more regulation involvement in the banks compositional and bottom and it to have over the same time people -- around a socialist or a little listing -- yes whipped up industry highlight why do what equities and I mean I just throwing it around. Loosely but not a socialist nation when out of purely capitalist nation and apparently they think. But the government dramatically -- we kind of a combination of free market and some regulation kind of put -- is a monitor."

" Doesn't really sort of measure would limit and a manager when we have been for -- decades and one of the reasons we got into this financial mess is that we tried to abandon. Prudential regulation of the financial system. This guy is still god can do it then the head regulator in the Bush Administration came to a press conference with a stack of -- the co owner of revenue of regulations and a chainsaw. For the very clear message that they were getting out of the business of of providing oversight and that's. Part of what settles on the road to disaster it."

" So I ask you that -- we start doing should -- be starting to redefine some of these words we need redefining premarket. By definition is no government intervention obviously we threw that out the windows as we start. Redefining some of these elements of our economy and our government."

" Yeah I think it's not constructive to set up this division between socialism and capitalism because they. A functioning market system requires a competent government -- just goes out of control doctor cool under any. Overarching ideology what yes."

" And I -- you know it's not the premarket started to require government I do want government should come in and actually enforce those free market contracts and I think that's what the big problem with all of the slippery slope that. Given what you're proposing that we're doing your doctor Galbraith as. These contracts -- that was supposed to be. This sacred and now we're -- saying hey Natalie it's not quite so good for the economy the homeowners are hurt want to bail out the homeowners and some on Wall Street and sometimes -- cronyism capitalism another one's not and again I can't I can't really resolved that the pulled her."

" Well the one of the problems with the contracts that were made in the financial sector is that they were made fraudulently. And fraudulent contract cannot be sacred you gotta be able to -- would probably get those true. Sure -- answered yeah absolutely and and that's what that's the stuff that needs to be taken here is to get a clean audit. Of what has been done and to hold the perpetrators to account at the longer we avoid that we're not gonna fix the banking problem."

" though the other is a big fear in the business community in the Wall Street community that some of this regulation in this outrage -- a lot of it is justified is going to go too far. And it -- the financial system for decades to come not just better."

" I have the right balance according of course like no government whatsoever but it gets in my community redevelopment act and you're telling -- do you get mortgages you can get them brightly for free no money down darn about and is back. And then does the government have responsibility in this Sunday they'll buy some of that back once that collapses in the system failed that was the government and legislators and our president has said. Everybody may homeowner and that didn't work out so well when they -- the strings coming up the company now do something and so -- okay hello we're little."

" The snow is likely cause of -- and housing debacle at all. Dot CI was not responsible for the housing debacle. While I was responsible for it was not the only completely basically unregulated mortgage originators. And banks thing that would do you supervise like Guam we've indymac. Which went off just to life -- accident limits. Bob -- pushing mortgage is on people that they couldn't afford. On terms that they didn't understand that were designed to blow up in their faces once the mortgage interest rates reset and a few years. This was a disaster that was what but that's -- the presence of -- generating a lot of these not it wasn't about getting people Linda Holmes."

" But you know that's about right what they know nothing about people on Wall Street they dealer from their mistakes that there are going to be jumping out there to be selling the ribbon on -- on doctor dollar market and then I looked. You got --"

" The senators that are out there. Let us and you the derivatives that are actor and and mark and mark them down to what they're worth which is very much in my view and and so again we subsidize the homeowners. Professor James -- Bret thank you so much and -- Collins pleasure."