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No Return To Normal - the Galbraith article | 96 comments (96 topical, 0 editorial, 0 hidden)
Re: The real priority is having ... (4.00 / 5)
Trying to issue credit into a recession a refusal to admit to the reality that you cannot push on a string ...

But that's what every policymaker wants, because they have learned that there is a correlation between credit and growth during the upwards phase of the economic cycle, they have been given kool-aid positing a causal link in the wrong direction (credit causes growth, rather than growth allows credit), and now that there is no growth and no credit, they want more credit. The saddest part of this is that everyone agrees that there has been an excess of credit over the last decade and yet in the same breath they demand more credit as the solution!

Most economists teach a theoretical framework that has been shown to be fundamentally useless. -- James K. Galbraith

by Carrie (migeru at eurotrib dot com) on Sun Mar 22nd, 2009 at 04:25:38 AM EST
[ Parent ]
The thing is, people are sick of it. (4.00 / 3)
The politicians that jump in front of the parade to say, "no, people need more income so they have an ability to repay debt" stand to make a big jump from the back of the political queue to a place near the front.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.
by BruceMcF (agila61 at netscape dot net) on Sun Mar 22nd, 2009 at 11:53:06 AM EST
[ Parent ]

No Return To Normal - the Galbraith article | 96 comments (96 topical, 0 editorial, 0 hidden)
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