Comments on: Time for Action http://baselinescenario.com What happened to the global economy and what we can do about it Sat, 21 Nov 2009 02:32:50 +0000 http://wordpress.com/ hourly 1 By: Daniel Vargas http://baselinescenario.com/time-for-europe-and-the-us-to-unite/#comment-138 Daniel Vargas Fri, 10 Oct 2008 23:45:04 +0000 http://baselinescenario.wordpress.com/?page_id=384#comment-138 I am etremely pleased with the current crisis as I was very sad for a long time, when the word "liberal" became equated with irresponsibility in the US. I really hope the MIT School of Economics realizes that this is a great oportunity to re engineer the world's economic aparatus. The knowledge to do so exists right on 30 Memorial Drive where I was once tought that market forces are to economic developement what gravity is to Civil Engineering. You can not disregard it, but you cannot let ruin your dreams. Daniel Vargas Civil Engineering and Economics, MIT, 1972 I am etremely pleased with the current crisis as I was very sad for a long time, when the word “liberal” became equated with irresponsibility in the US. I really hope the MIT School of Economics realizes that this is a great oportunity to re engineer the world’s economic aparatus. The knowledge to do so exists right on 30 Memorial Drive where I was once tought that market forces are to economic developement what gravity is to Civil Engineering. You can not disregard it, but you cannot let ruin your dreams.
Daniel Vargas
Civil Engineering and Economics, MIT, 1972

]]> By: Dan http://baselinescenario.com/time-for-europe-and-the-us-to-unite/#comment-107 Dan Thu, 09 Oct 2008 19:37:12 +0000 http://baselinescenario.wordpress.com/?page_id=384#comment-107 Y'know, too many folks are looking for the conspiracy. I grant you that there are quite a few egregious conflicts of interest out there, but the idea that most of these guys are actually out to cheat and rig the market is... I don't know, naive? I mean, of course they used whatever influence they had to achieve for themselves the best possible place in society. Is that even a surprise? We all do that. But at the same time, conflicts of interest not withstanding, the fact is that most people believe that their own self-interest is synonymous with the public good. Hence, most folks see themselves as good folks trying to do the right thing. My point is twofold. First, blame is not only a waste of time, it's self-incriminatory. You show me a man who's not out for his own family's well-being, and I'll show you a man with a family in crisis. Second, all of that misses the point. The point is that we've had the pedal-to-the-metal on the supply-side for so long that we've had to over-invest in crap. But just 'cause we bought it don't make it worth anything. It's still crap. Fortunately, we're all complicit. It's a public problem. It can reasonably be attacked with public solutions. Unfortunately, we're already in debt. Hence, we're all going to be working for the Chinese soon as we try to pay off the note. Y’know, too many folks are looking for the conspiracy. I grant you that there are quite a few egregious conflicts of interest out there, but the idea that most of these guys are actually out to cheat and rig the market is… I don’t know, naive? I mean, of course they used whatever influence they had to achieve for themselves the best possible place in society. Is that even a surprise? We all do that. But at the same time, conflicts of interest not withstanding, the fact is that most people believe that their own self-interest is synonymous with the public good. Hence, most folks see themselves as good folks trying to do the right thing.

My point is twofold. First, blame is not only a waste of time, it’s self-incriminatory. You show me a man who’s not out for his own family’s well-being, and I’ll show you a man with a family in crisis. Second, all of that misses the point. The point is that we’ve had the pedal-to-the-metal on the supply-side for so long that we’ve had to over-invest in crap. But just ’cause we bought it don’t make it worth anything. It’s still crap.

Fortunately, we’re all complicit. It’s a public problem. It can reasonably be attacked with public solutions. Unfortunately, we’re already in debt. Hence, we’re all going to be working for the Chinese soon as we try to pay off the note.

]]> By: Jim http://baselinescenario.com/time-for-europe-and-the-us-to-unite/#comment-90 Jim Thu, 09 Oct 2008 13:32:03 +0000 http://baselinescenario.wordpress.com/?page_id=384#comment-90 It seems as though the world financial markets long ago traded in Adam Smith's "invisible hand" of free markets for a Frankenstein/"Wizard of Oz" fabricated beast, created by the financial services lobbying out of pieces that they wanted without care for the health of the whole. I wonder if this crisis would have been had lobbyists not had such strong influence over Congress? So now, we're left with Reagan, Friedman & Hayek proponents advocating a socialization of the banking system. My goodness. As the Chinese proverb goes, "May you live in interesting times." It seems as though the world financial markets long ago traded in Adam Smith’s “invisible hand” of free markets for a Frankenstein/”Wizard of Oz” fabricated beast, created by the financial services lobbying out of pieces that they wanted without care for the health of the whole.

I wonder if this crisis would have been had lobbyists not had such strong influence over Congress? So now, we’re left with Reagan, Friedman & Hayek proponents advocating a socialization of the banking system. My goodness.

As the Chinese proverb goes, “May you live in interesting times.”

]]> By: self-evident » Ah, crud, they caught me on camera http://baselinescenario.com/time-for-europe-and-the-us-to-unite/#comment-82 self-evident » Ah, crud, they caught me on camera Wed, 08 Oct 2008 23:07:23 +0000 http://baselinescenario.wordpress.com/?page_id=384#comment-82 [...] do not miss the Baseline Scenario’s updated forecast and recommendations:  Time for Europe and the U.S. to Unite First, there are worrying signs that the credibility of the US authorities is on the [...] [...] do not miss the Baseline Scenario’s updated forecast and recommendations:  Time for Europe and the U.S. to Unite First, there are worrying signs that the credibility of the US authorities is on the [...]

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