"...The great financial crash of 2008 grew out of the absurd new faith in unregulated markets, which, combined with cheap money, had allowed the big banks to create an enormous subprime mortgage bubble, one that would have destroyed the world economy when it burst without the massive intervention of the government. This time however Ben Bernanke and Tim Geithner showed no interest in Keynesian intervention as the primary solution (although the Obama stimulus was a significant Keynesian move.) Indeed, Bernanke in particular wanted to show that Hoover and FDR had chosen the wrong remedy by spending more government money instead of just restoring liquidity in the banking system--a term which meant, in practice, buying up all the worthless trillions of assets on the balance sheets of the banking system with money created by the federal reserve. That, and the stimulus, did lead to a fairly successful recovery in the US, although inequality continued to increase...." DK
Better to 'have destroyed the world economy', as DK put it.
The world economy has no master but the global market he decries............................
Better to 'have destroyed the world economy', as DK put it.
The world economy has no master but the global market he decries............................
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