LQD: "How to stop the next bubble?" | 14 comments (14 topical, 0 editorial, 0 hidden)

Re: LQD: "How to stop the next bubble?" (4.00 / 6)

But this is exactly the problem that Stiglitz was talking about (someone posted his column recently, but I don't have time to look for it now.)

i.e. Neoliberalism is at heart the belief, the faith that markets are always automatically self-correcting, stable and tend to equilibrium.

It's just not true, but until we beat the knowledge that it's not true into the average economist and the average politician we're not going to get very far in reforming the system.

by Metatone (metatone [a|t] gmail (dot) com) on Thu Jul 10th, 2008 at 12:16:45 PM EST
[ Parent ]

Re: LQD: "How to stop the next bubble?" (4.00 / 2)

The problem is that when they understand it's not true, they conclude that lack of market freedom is the cause.

When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done. — John M. Keynes

by Migeru (migeru at eurotrib dot com) on Thu Jul 10th, 2008 at 12:20:42 PM EST
[ Parent ]

Re: LQD: "How to stop the next bubble?" (4.00 / 2)

That is why attempts to change the opinions of existing political and economic elites is futile. They will always make the minimum concessions and move on. If those concessions are accepted as the solution, the problem is only deferred, perhaps for a few decades, as after the Great Depression, likely for a much shorter time this time around, given resource problems.

The only real solution is to replace these policy makers with ones with a different agenda. That requires public support. That requires a public willing to consider alternatives. Should the next year prove as interesting as the last those conditions may obtain. The question is who will prevail?

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Thu Jul 10th, 2008 at 12:39:21 PM EST
[ Parent ]

Re: LQD: "How to stop the next bubble?" (4.00 / 2)

But bogus market thinking and the ideology of the management class have infected everything including education - so it's haaard.

When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done. — John M. Keynes

by Migeru (migeru at eurotrib dot com) on Fri Jul 11th, 2008 at 06:03:05 AM EST
[ Parent ]

Re: LQD: "How to stop the next bubble?" (4.00 / 2)

Like the Freedmanites, we must await the opportunity. In the USA, the presidential election may be enabling, but will not be determinative. However, more financial meltdowns combined with still higher energy and food prices along with possibly unforeseen developments could set the stage. It would only be an opportunity, and unless skillfully exploited, would be lost. Under such conditions small forces can have large effects. Why should Freedmanites be the only ones who can benefit from shocks and disasters?

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Fri Jul 11th, 2008 at 12:12:22 PM EST
[ Parent ]

Re: LQD: "How to stop the next bubble?" (none / 0)

Who's waiting in the wings, like the Friedmanites used to?

When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done. — John M. Keynes

by Migeru (migeru at eurotrib dot com) on Fri Jul 11th, 2008 at 12:40:11 PM EST
[ Parent ]

Re: LQD: "How to stop the next bubble?" (none / 0)

Well, the Freedmanites didn't disappear when Freedman died. The question is if anyone else is waiting and if there will be any contest for the "solution" to a crisis.

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Fri Jul 11th, 2008 at 01:02:26 PM EST
[ Parent ]

Re: LQD: "How to stop the next bubble?" (none / 0)

I guess the answer is 'no', huh?

When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done. — John M. Keynes

by Migeru (migeru at eurotrib dot com) on Fri Jul 11th, 2008 at 05:58:26 PM EST
[ Parent ]

LQD: "How to stop the next bubble?" | 14 comments (14 topical, 0 editorial, 0 hidden)

Top Diaries

Those whom the gods wish to destroy...

UK Disinformation and Propaganda The Consortium

Astra Zeneca UK contract signed day after EU

Insight from Gina McCarthy

National Myths [Updated]

Irish economy disengages from Britain

Submission on Irish Unification

Major Policy Shift On Saudi Relations and MbS

Recent Diaries

Ben Gurion: Yemenite Jews and Stolen Babies

Those whom the gods wish to destroy...

UK Disinformation and Propaganda The Consortium

Astra Zeneca UK contract signed day after EU

Drama In Netanyahu's Security Cabinet

National Myths [Updated]

BIG Pharma and Corona Profits

Frost Bite: Equivalence Tussle UK Power Politics

Major Policy Shift On Saudi Relations and MbS

No to Hostage Diplomacy: Time4FirmIsraelPo
licy

Irish economy disengages from Britain

Insight from Gina McCarthy

Submission on Irish Unification

U.S. Constitution of 1787 and A Patchwork Democracy

Reading the Tea Leaves In The White House

Oxford/AstraZenec
a Fails In South Africa

ICC Has Jurisdiction Over Occupied Palestine

Europhilia does not equal Anglophobia

Learning from a Pandemic

China's Sphere of Influence

Occasional Series