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Re: Joseph Stiglitz on Capitalist Fools: How We Crashed the Economy
From: David Farber <dave () farber net>
Date: Wed, 10 Dec 2008 21:18:22 -0500
Begin forwarded message: From: "Kurt Buff" <kurt.buff () gmail com> Date: December 10, 2008 8:49:38 PM EST To: dewayne () warpspeed com, dave () farber netSubject: Re: [IP] Joseph Stiglitz on Capitalist Fools: How We Crashed the Economy
Two snippets: "Because they did very little to stimulate the economy, real stimulation was left to the Fed, which took up the task with unprecedented low-interest rates and liquidity." and "The flood of liquidity made money readily available in mortgage markets, even to those who would normally not be able to borrow." I.E., inflation. For someone who is supposed to be a Randite, Greenspan sure didn't follow the spirit or letter of her teachings, nor of basic economics in general. Students of Murray Rothbard, Ludwig von Mises and Friedrich Hayek know what happened - inflation, leading to unsustainable malinvestment, which is the usual reason for bubbles and crashes. Rothbard's book America's Great Depression draws this lesson quite clearly, and the parallels are quite striking between then and now. Kurt On Wed, Dec 10, 2008 at 4:36 PM, David Farber <dave () farber net> wrote:
Begin forwarded message: From: dewayne () warpspeed com (Dewayne Hendricks) Date: December 10, 2008 12:36:25 PM EST To: Dewayne-Net Technology List <xyzzy () warpspeed com>Subject: [Dewayne-Net] Joseph Stiglitz on Capitalist Fools: How We Crashedthe Economy Joseph Stiglitz on Capitalist Fools: How We Crashed the Economy by TomP Wed Dec 10, 2008 at 05:24:18 AM PST <http://www.dailykos.com/storyonly/2008/12/10/82418/061/679/670543>Joseph Stiglitz won the Nobel Prize for economics in 2001. He was Chairman of the President's Council of Economic Advisors from 1995 to 1997 for Bill Clinton. He is also the former Senior Vice President and Chief Economist of the World Bank. He opposed financial industry deregulation under Clinton, fought with Larry Summers, who is now Obama's chief economic advisor, over regulating derivatives (Stiglitz wanted to, but Summers won and that wrongdecision contributed to the mess we are in.) Stiglitz, while favoringtrade, has questioned some of the faith-based beliefs of the free tradefundamentalists.Stiglitz has an excellent article in Vanity Fair on how we got to the worsteconomic times since the 1930s. He points to five key mistakes—under Reagan, Clinton, and Bush II—and one national delusion.The truth is most of the individual mistakes boil down to just one: a belief that markets are self-adjusting and that the role of government should beminimal. [snip]RSS Feed: <http://www.warpspeed.com/wordpress> ------------------------------------------- Archives: https://www.listbox.com/member/archive/247/=now RSS Feed: https://www.listbox.com/member/archive/rss/247/ Powered by Listbox: http://www.listbox.com
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- Joseph Stiglitz on Capitalist Fools: How We Crashed the Economy David Farber (Dec 10)
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