Here's an photo from that Kenyan economics textbook...
Posted on 11/23/2009 6:28:55 AM PST by SeekAndFind
Reagan-like faith in efficient markets set the stage for the financial meltdown.
Great crises have a way of reminding us that acting as though we know perfectly well what the future holds almost always leads to disaster.
That's especially true in economics, which tends to underscore the murkiness of the real world by dealing out surprises one after another -- booms, crashes, bubbles, you name it.
It's fitting, therefore, that the recent economic meltdown has begun to restore that great apostle of uncertainty, John Maynard Keynes, to his rightful position of influence in economic thought.
"Keynes asked why financial markets are inherently unstable," Robert Skidelsky told me the other day. "His answer was that we don't know what the future will bring. He talked about the inherent precariousness of knowledge, that when we estimate the future we're only disguising our ignorance."
If that sounds obvious, keep in mind that the financial disaster of recent times was born in the hubris that the financial markets are nearly flawless machines for assessing risk and that government regulation would make them inefficient.
Skidelsky is a British economic historian whose three-volume biography of Keynes came out on these shores from 1986 to 2001. We had a chance to talk last week while he was visiting the U.S. to promote his latest work, "Keynes: The Return of the Master," published in September, which aims to spotlight the relevance of Keynesian economics for modern times.
He argues that it's impossible to miss the connections: For one thing, the banking and credit collapse of recent years stems from precisely the same economic mistakes Keynes saw in the 1920s.
(Excerpt) Read more at latimes.com ...
What we are seeing is KENYAN economics...
Like the Global Warming scam, Keynesian economics(political theory) will never die.
So blaming Bush isn't working, blaming Palin isn't working, so now they are blaming Reagan.
Of course it can -- it can learn what not to do.
Is this guy frigging KIDDING me? The entire reason for the meltdown as risk wasn’t borne by the ones making the transactions - that risk was held by the federal GOVERNMENT! If companies couldn’t shift risk to the feds (e.g. Fannie Mae), they would have to weigh their risks more appropriately and conservatively. Isn’t the failure of the stimulus the ultimate proof that Keynesian economics is bullcrap?
Are these people that stupid? Democrats meddling in the lending standards for mortgages created the meltdown.
“Reagan-like faith in efficient markets set the stage for the financial meltdown.”
This is a basic lie at so many levels there is no reason to read further or, read any part of the Left Angeles Times.
Here's an photo from that Kenyan economics textbook...
How Brilliant. 750 people in Washington spending every last cent of disposable income of over 300 million people. How could it be so wrong? /sarcasmoff.
Sure, in the same sense we can learn from Adm. Villeneuve's tactics at Trafalgar in 1805.
oops, forgot to ping you
The Coming Deficit Disaster, The Wall Street Journal, November 20, 2009.
There’s no such thing as free markets in the US. In recent decades, government has extended its tentacles into every crevice of the American economy.
So, basically, the author is arguing that the answer to a disaster that was caused by government interventionism is more government interventionism.
Beat me to it.
I believe I saw Obama’s family in that photo.
Basically it's the "Al's Glass" Economy.
1. Enlightened consumer groups and citizens point to a problem that needs correcting.
2. These folks often point to free trade or market capitalism as the reason for the problem.
3. Regulation is passed in order to make “capitalism work for everybody”.
4. The regulation produces impacts that the regulators never saw coming – screwing consumers and small businesses that was never the intention of the regulation.
5. The regulations themselves are often inspired by, written, and welcomed by, the major companies being regulated!
6. The regulations turn out to make the companies being regulated MORE profitable and increase their market power. See the tobacco settlement, see the myriad auto safety regulations, see the health insurance industry, see the toy industry, see the Clean Air Act, etc.
7. Critics call this capitalism again.
8. Enlightened regulators try to improve regulations, carve out exemptions, and undo the poor consequences from the first round of regulation.
9. Return to step 2.
1. Enlightened consumer groups and citizens point to a problem that needs correcting.
2. These folks often point to free trade or market capitalism as the reason for the problem.
3. Regulation is passed in order to make “capitalism work for everybody”.
4. The regulation produces impacts that the regulators never saw coming – screwing consumers and small businesses that was never the intention of the regulation.
5. The regulations themselves are often inspired by, written, and welcomed by, the major companies being regulated!
6. The regulations turn out to make the companies being regulated MORE profitable and increase their market power. See the tobacco settlement, see the myriad auto safety regulations, see the health insurance industry, see the toy industry, see the Clean Air Act, etc.
7. Critics call this capitalism again.
8. Enlightened regulators try to improve regulations, carve out exemptions, and undo the poor consequences from the first round of regulation.
9. Return to step 2.
Garbage on the ground. Garbage on the roof! Garbage everywhere around this little farmer’s market. I wonder what that smells like.
On second thought — I don’t want to know.
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