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Believe it or not, Noriel Rounini said this in an interview to WSJ:

Karl Marx had it right. At some point, Capitalism can destroy itself. You cannot keep on shifting income from labor to Capital without having an excess capacity and a lack of aggregate demand. That's what has happened. We thought that markets worked. They're not working. The individual can be rational. The firm, to survive and thrive, can push labor costs more and more down, but labor costs are someone else's income and consumption. That's why it's a self-destructive process.
by das monde on Wed Aug 17th, 2011 at 01:11:11 AM EST
And we didn't learn this in the 1930's because...?

Economics is politics by other means
by Migeru (migeru at eurotrib dot com) on Wed Aug 17th, 2011 at 02:08:34 AM EST
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People learn many things. For example, how to induce market bubbles and profit from them. How to corrupt other smart people, media and governments. How to wait a couple of generations, and then falsify history lessons.

I wonder, did Roubini recently got a new insight for himself, or he coolly though like this all along?

by das monde on Wed Aug 17th, 2011 at 03:50:55 AM EST
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We did.

But, as Bruce quibbed once, we repeat the mistakes of our fathers, the gross blunders of our grandfathers and the catastrophes of our great-grandfathers.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Wed Aug 17th, 2011 at 04:05:47 AM EST
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The individual can be rational.

If food gets too expensive, he just stops eating. But we don't have rational monopoly power nor rentiers, right?

by kjr63 on Thu Aug 18th, 2011 at 05:17:23 AM EST
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Rational actors are very predictable, and there are surely ways to (ab)use them.
by das monde on Thu Aug 18th, 2011 at 11:16:01 AM EST
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