Saturday, March 21, 2009
Systemic failure and its solution
A clear exposition of what is going on by Patrick Buchanan: and for once, it was NOT done by the Jews. US Government is fighting to prevent another panic run, the idea being that the current crisis is caused by panic alone, and that once the situation gets stabilized, the real problems will be easily solved. I think it is right thinking, as the whole subprime mortgages adds up to no more than 300 million dollars, peanuts for the 13 Trillion US economy. It is really amazing that such a relatively minuscule issue - such as the lower classes being unable to pay back their mortgages - would create world financial crises, and the reason that this is so is simply panic. Bernanke's problem is how to pacify mass anxiety. By starting to invest in the stock exchange, I am betting that Bernanke will succeed. The illustration is also from Takimag, which appears to be improving.