Wednesday, March 11, 2009

Years ago banking fiasco foreseen . . .

Much of the mainstream media (MSM) in the United States has been reporting that no one saw this economic disaster on the horizon. But, if one stays alert and reads a lot, there are stories in the MSM challenging this position. The New York Times today, Wed. Mar. 11, 2009, had an excellent article about a research paper written sixteen years ago titled simply: “Looting.”

Economists, George Akerlof, who later won a Nobel Prize, and Paul Romer, a well respected expert on economic growth, argued the promise of government bailouts isn’t merely one aspect of a banking disaster like the present one; no, the government safety net is the core problem.

Read the article here:
http://www.nytimes.com/2009/03/11/business/economy/11leonhardt.html?ref=business

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