The View From 1776

A Review of Subprime Meltdown Doctrine

Thomas Woods’s new book looks at all of the explanations - from the liberal-progressive side to the conservative side - and weighs them against empirical data.

Posted by .(JavaScript must be enabled to view this email address) on 04/08 at 11:39 PM
  1. "Woods points out that to blame "the crisis on 'greed' is like blaming plane crashes on gravity".

    Well, if the plane is flying and it drops out of the sky for some reason, ultimately gravity is responsible. Nevertheless, his analogy is not great. But then again, gravity is a perfect analogy for what happened in the unrealistic rise of economic markets, because, as they say, what goes up, must come down.

    Woods is right to say that blaming the crises on just 'greed' is fool hearty and simplistic. But, also, he shows foolishness and narrow mindedness blaming the crisis solely on monetary policy. There were other factors involved as The View has often pointed out in other posts, namely, human nature. Other factors were stupidity, gluttony, incompetence, complacency, laziness and arrogance.

    In Canada we had cheap money like the U.S. but we didn't go crazy with it like you folks and other countries such as Ireland and Iceland did.
    Posted by .(JavaScript must be enabled to view this email address)  on  04/09  at  11:19 AM
  2. The US has a negative trade balnce with our Canadian friends. Canada is a commodity based economy with fewer restrictions on production than here. Commodity prices fell off a cliff and Canada is in recession. Not as bad as here but still relatively weak with unemployment about the same. As far as your characterizations of stupidity, gluttony, incopmpetence, complacency, laziness and arrogance are concerned, our government is indeed loaded with those qualities and will continue to govern in that manner as long as the American version of folks like you continue to vote the boobs in. There would have been no crisis absent the manipulative monetary policy of the FED and it's supervision of the banking system in response to the various 'crises' which developed over Greenspan's time there. You can continue to pretend otherwise, ignore the facts and blame the 'arrogance and greed' of Americans responding to all of the distorted market signals originating from the FED but you show yourself to be a fool, an economic illiterate. Any governmnet run and subsidized mortgage issuers and securitizers in Canada regulated by the local versions of Barney Frank and Chris Dodd? I didn't think so.
    Posted by .(JavaScript must be enabled to view this email address)  on  04/09  at  12:10 PM
  3. I don't think you get it TC. The stupidity, arrogance and so on hasn't only resided in the government. It has also resided in the population at large. If you had better leaders last time around who set better examples and standards, the population at large may have behaved better and more prudent in their consumerism and avoid their reckless spending.
    Posted by .(JavaScript must be enabled to view this email address)  on  04/09  at  12:41 PM
  4. In it's current form governmnet sets the rules and the markets respond. Market signals like price are distorted by interventionist government policies which serve two masters: short term economics and long term aggrandizement of government power. Mr Wood's analogy to blaming gravity for a plane crash is more accurate than you realize. Listen to yourself as you blame human beings who are only acting on phony economic signals originating with the FED which, unavoidably, serves the banking sytem and the political establishment. This is a systemic failure and the system was first put in place in 1913 during the hayday of the 'progressive' era as the booboisie actualy began to believe in elitist, top-down control of the economy immune to politics and self-serving polticians. You ask for 'prudence in consumerism'. Based on you prior comments you could fairly be described as a 'vulgar' Keynesian. To a vulgar keynsian, consumption is what it's all about, even when funded with debt created out of thin air by the central bank. The central bank, fiat money and fiscal recklessness, et al. are all based on vulgar keynesianism and the rationale it provides to politicians to do what they'd like to do anyway: spend other peoples money to serve their own political interests. You've really got to start thinking before you form an opinion regarding economics or the nature of the state.
    Posted by .(JavaScript must be enabled to view this email address)  on  04/09  at  01:24 PM
  5. "This is a systemic failure ..."

    And the people are part of and make the system, and they influence the system. People are what makes it systemic, not some arbitrary, abstract markets as you keep insisting.

    Too many economist have based their models on human rational behavior. As we have seen, though, with this present crisis, human behavior was anything but rational, especial in the real estate market, which has been the crux of the problem.

    Also, part of the systematic failure has been with the corruption and cronyism the past administration neglected to address.
    Posted by .(JavaScript must be enabled to view this email address)  on  04/09  at  03:31 PM
  6. Markets are abstract, arbitrary? Is the computer you're on right now abstract, arbitrary? And the state is what? I hope you're trying to be funny. No one can be that silly. What corruption and cronyism is the big O creating right now with his takeover of banking, insurance, autos, health care? Smells like corporatism to me, what you would call 'crony capitalism' and I call fascism. Much like the 'progressive' zeitgeist that gave us the FED. To me, it stinks regardless of party.
    Posted by .(JavaScript must be enabled to view this email address)  on  04/09  at  03:46 PM
  7. TC, I am happy that stink is here to bug you.
    Posted by .(JavaScript must be enabled to view this email address)  on  04/09  at  10:34 PM
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