It has hit the fan. (And the fred.)
And I’ve been reading up. I thought it would be helpful if I posted links to the articles I’ve been studyingas I read, so that someone else might benefit from finding access all in one place. If you have good links on the financial crisis to recommend, please post them in comments.
Economics writer, and Prodos’ and my friend, Gerard Jackson,wrote an article back in 2004 predicting a recession for the USA in 2008. For his reasons read:
More recent articles by Gerard Jacksonon the actual financial mess we’re in now, center on monetary policy, rather than on Fannie Mae or Freddie Mac, unlike manyarticles by others I’ve read. (And don’t look to Jackson for dubious theories of capitalist greed underlying the crisis. Leave that to Kevin Rudd, our Australian Prime Minister.) Here are some of those monetary policy articles:
I have a lot more links to articles from other writers, including those addressing Fannie and Freddie – those scoundrels! But that will have to wait until later.
It is now later!
Here are some columns from one of my favorite commentators, Thomas Sowell:
From Bailout Politics: “Neither do the voters deserve to be deceived on the eve of an election by the notion that this is a failure of free markets that should be replaced by political micro-managing.
“If Fannie Mae and Freddie Mac were free market institutions they could not have gotten away with their risky financial practices because no one would have bought their securities without the implicit assumption that the politicians would bail them out. ”
But WHO in the world would imagine this crisis to be caused by a “failure of free markets”? If you’ve been reading newspapers on the mortgage crisis over the past weeks, you’ll have seen plenty of that. And it’s not just in the USA. Here’s the Prime Minister of Australia, Labor’s Kevin Rudd, blaming capitalist greed: