Sunday, December 23, 2007

Free market thinkers, thinking again

By Libby

Krugman
Of course, now that it has all gone bad, people with ties to the financial industry are rethinking their belief in the perfection of free markets. Mr. Greenspan has come out in favor of, yes, a government bailout. “Cash is available,” he says — meaning taxpayer money — “and we should use that in larger amounts, as is necessary, to solve the problems of the stress of this.”

Given the role of conservative ideology in the mortgage disaster, it’s puzzling that Democrats haven’t been more aggressive about making the disaster an issue for the 2008 election. They should be: It’s hard to imagine a more graphic demonstration of what’s wrong with their opponents’ economic beliefs.

Good advice. Too bad the Dems are unlikely to take it. [via]

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7 Comments:

Anonymous lester said...

he's completely wrong. greenspan is the one who created the whole problem by lowering interst rates to absurd levels. the government instituted sometyhing called the "community reinvestment act" which basically made ,loans to credit risks mandatory in the name of political correctness.

Krugman is desperately hanging on to keynesianism, a dead system.

example: the US gets 9/11 largely because of our presence in the middle east. the solution? MORE bigger footprints in the region


this is precicely the solution comrade krugman is prescribing via the markets. It is the type of idea that only a servile believer in the supremecy of governmental authority would come up with. sorry, you can't solve the problem with more of the problem.

10:32:00 AM  
Blogger Libby Spencer said...

You can't solve it by doing nothing either Lester.

10:46:00 AM  
Anonymous lester said...

let people who shuolodn't have sought loans and people who shouldn't have given the loans suffer the consequences of their actions and then stop inflating the currency to create artificial booms and stop having politically correct laws that force banks to loan to credit risks.

10:07:00 AM  
Blogger Libby Spencer said...

It's complicated Lester. A lot of the people who got in over their head were actually victims of predatory lenders. We have to strike a balance.

10:37:00 AM  
Blogger Libby Spencer said...

It's complicated Lester. A lot of the people who got in over their head were actually victims of predatory lenders. We have to strike a balance.

10:37:00 AM  
Anonymous lester said...

that's like " good times". do you remeber that show?


"eeeasy credit rip off!"

they can do whatever they to save face in the short term, but in the long term we need to stop creating artifical booms by suddenly deciding one thing is going to be huge and putting tons and tons of cash into it. it's mal investment that is the problrm. mal = bad.

11:00:00 AM  
Blogger Libby Spencer said...

I'd probably agree with that Lester.

12:45:00 PM  

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