Mon Aug 10th, 2009 at 10:01:26 AM EST
A big tip o' the hat to disrael on DailyKos, who caught the latest from economist Thomas Palley, America’s Exhausted Paradigm: Macroeconomic Causes of the Financial Crisis and Great Recession.
Palley's introduction sets the hook quite well:
Most commentary has therefore focused on market failure in the housing and credit markets. But what if the house price bubble developed because the economy needed a bubble to ensure continued growth? In that case the real cause of the crisis would be the economy’s underlying macroeconomic structure. A focus on the housing and credit markets would miss that.
I'm on the road and running late already, so all I'll do here is vigorously urge everyone to read Palley's article in its entirety. Because until people in power, like Larry Summers, starts referring to the problems and solutions Palley identifies, things will never improve for the vast majority of the world's population, and only the behavior of vampire squids will be richly rewarded.