economics

What the bailout does to capitalism and the dollar

As we have seen, organizations that are too big to fail, fail big.  The US government is the biggest of them all. For credit to work, people who need credit should not get credit.  You should only be able to get credit if you can prove you do not need it.  The major purpose of the bailout is to ensure that people who need credit will continue to get it. For capitalism to work, to produce good results, rich people …

economics

Wall Street Journal explains the bailout crisis

Wall street journal reports that this crisis was the predicted result of politically correct lending policies commanded by the Clinton administration, continued and worsened by the Bush administration. Carpe Diem reports that this crisis was predicted when these policies were introduced by the Clinton Administration.  In 1999, the NY Times observed: Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic …

economics

The financial crash

Brad de Long looks at the financial crisis, and concludes that the wise and good hand of government is necessary. Third, the market fundamentalists in other sectors will need to be quiet for quite a while. We have just seen financial markets rife with moral hazard, agency, and adverse selection problems crash spectacularly. Is this a situation in which we should move health care–also rife with moral hazard, agency, and adverse selection problems–toward a free market configuration? No. Market regulation …

economics

The success of globalization

Massive globalization — a major move towards free market capitalism — has brought over a billion people out of poverty, while sixty years of socialist chaos and violence has failed to convince most of the world that central planning is a very bad way to run any economy.“Ruble” symbolizes pretend money, unconvertible into goods, much as “Finland” symbolizes submission to a hostile power, and “Peso” symbolizes inflation. Globalism has done what socialism promised to do and failed to do: It …

war

Yellow bellied surrender monkeys

In the last ten years or so we have been hearing a lot of disturbing reports about Britain – reports of a society of fearful and servile subjects, of criminals acting with impunity, of the British accepting second class status to Islam.  Maybe the gun lobby is exaggerating British submission to criminals, maybe racists and war hawks are exaggerating British submission to Islam, but this story of cowardice and betrayal from Basra fits with what we have been hearing about …