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Very good.

As an alternative opening, how about:

The "savings glut" theory which Martin Wolf resurrects (...) fails to address the root cause of the financial crisis: the reckless dereliction of central bankers and financial leaders in the performance of their duties.

The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman

by dvx (dvx.clt št gmail dotcom) on Thu Oct 9th, 2008 at 07:05:36 AM EST
[ Parent ]
I'm with you dvx.

I think it's hard to make the case that the saving glut has been created by the policies of the West. (hard does not mean impossible, but we'd be talking about a chain event. It's not the immediate consequence by any mean).

On the other hand, that it fails to address the root cause is clear enough. You would have had a bubble, Asia or no Asia, with those negative real interest rates for so long, coupled with next to no taxation on the proceeds of capital.

"The womb that spawned that thing is fertile yet"

by Cyrille (cyrillev domain yahoo.fr) on Thu Oct 9th, 2008 at 07:58:07 AM EST
[ Parent ]

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