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REcently I found this interview with Hans Werner Sinn where he claims


 The Japanese have not cleaned the balance sheets of their banks, they have always brought new credit to repay the old credit, they didn't allow for the bankruptcies to happen. So Schumpeterian types of cleaning solutions were not chosen, and they couldn't get the economy going again.

So Schumpeter again. After Schumpeter destroyed the Weimar republic his disciples will destroy the EU.

Schumpeters claim that in a crisis you need to crush as much companies as possible, such that afterwards only the fittest would remain has been proven to be total bullshit one more. If it would make any sense the Greek economy should now grow like crazy after contracting (nominally) by 40%.

by rz on Fri Oct 31st, 2014 at 11:02:01 AM EST
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