Alan Greenspan, the financial guru who engineered our current economic disaster, admits that he was not guided by theory. Instead, he explains that he was guided by the tooth fairy of a free marketist ideology. As with all people who are driven by ideology, he was unable or unwilling to listen to the simple illogic of his model and the abundant evidence of impending disaster produced by the policies he advocated.
Short Takes
- Lip Reading Babies: Utter nonsense!
January 17, 2012 | 8:54 pmSays psychologist David Lewkowicz of Florida Atlantic University, who led [a] study published yesterday…
’The baby in order to imitate you has to figure out how to shape their lips to make that particular sound they’re hearing,’’
Can you “figure out” why this is utter nonsense? I should as obvious as monkey see, monkey do. With this sort of thing passing for science, we are surely doomed.
- The Mark of Cain
November 9, 2011 | 3:13 amWatching Herman Cain duel with his female accusers is like watching the Jerry Springer Show. Not a pretty picture. If you partake, be sure an wash you hands afterwards.
- The Truth About Sovereign Debt
November 1, 2011 | 4:01 pmDuring the housing bubble people bet on rising home prices by taking out loans on to-good-to-be true terms and investment banking made bets on the rising home prices by lending on to-good-be-true terms. Everyone drank the Kool Aid. Prices went down. Having made bad bets, home owners should default on their loans and bankers should take their losses. This is the simple-minded logic of every-man-for-himself market economics.
The nations that joined the EU placed bets on rising economic prosperity that would come from joining the EU and adopting the Euro and borrowing from the EU banks on to-good-to-be-true terms. The EU investment bankers made speculative bets on EU member nations by lending them billions on to-good-to-be-true terms. The borrower economies went down not up. Everyone drank the Kool Aid and having made bad bets the borrowers should default on their loans and the bankers should take their losses. This too, is the simple-minded logic of every-man-for-himself market economics.
So how do the bankers hold the world hostage to their bad bets? They claim they are too big to fail. In other words, the only game they know is heads they win, tails we lose.
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