tag:blogger.com,1999:blog-6276561747841568697.post5726831046494525567..comments2024-03-27T05:23:48.855-04:00Comments on Krugman-in-Wonderland: Rabbit holes and rabbits from the hatWilliam L. Andersonhttp://www.blogger.com/profile/01802990642236807359noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-6276561747841568697.post-19817904319147214572011-10-15T13:12:40.354-04:002011-10-15T13:12:40.354-04:00Anonymous,
Spoken like a true Statist. May I hav...Anonymous,<br /><br />Spoken like a true Statist. May I have your permission to flush now?Mike Mnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-66345976316873251872011-10-15T12:17:34.796-04:002011-10-15T12:17:34.796-04:00Imagine an omniscient and benevolent elf named Ral...<i>Imagine an omniscient and benevolent elf named Ralph. If we only elected Ralph the Elf to regulate and be the overseer of every single economic decision and transaction in the whole wide world, nothing would ever go wrong. You crazy Austrians don’t ever want things to be nice and just right. Do you really hate mankind?</i><br /><br />For every capitalist banker in the world there must be at least one Elizabeth Warren looking over his shoulder making sure he does the right thing before they are approved. Washington DC hired only a few million Elizabeth Warrens to oversee the filthy rich and you see what that got us. One for one, or we are done.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-69887803941976639062011-10-15T11:49:27.893-04:002011-10-15T11:49:27.893-04:00Whoops! I should have added that not all who are ...Whoops! I should have added that not all who are childless are narcissistic... just Keynesians (with or without children). <br /><br />An evolutionary dead-end... puuuurfect!<br /><br />I am a dog person ~~~figures~~~raha bahahttps://www.blogger.com/profile/10995194142435262343noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-64863872006793669142011-10-15T10:29:58.488-04:002011-10-15T10:29:58.488-04:00The Krugmans have no children but apparently own t...The Krugmans have no children but apparently own the world's biggest cat.<br /><br />http://www.menandcats.com/wp-content/uploads/2010/02/krugman_crop.jpg<br /><br />If the cats are spayed, I guess that's the end of the line for the Krugmans.Bob Roddishttps://www.blogger.com/profile/17263804608074597937noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-48765200767104723032011-10-15T09:18:39.528-04:002011-10-15T09:18:39.528-04:00Please correct me if I am wrong... but it seems t...Please correct me if I am wrong... but it seems to me that both Keynes and Krugman had/have no skin in the game ... i.e., they were/are childless. Not having children to dote on leaves one with plenty of time to dote on ones self... to live in the 'now' the future be damned.<br /><br />What future? ;-)raha bahahttps://www.blogger.com/profile/10995194142435262343noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-50854532989278145862011-10-15T06:14:19.671-04:002011-10-15T06:14:19.671-04:00Imagine an omniscient and benevolent elf named Ral...Imagine an omniscient and benevolent elf named Ralph. If we only elected Ralph the Elf to regulate and be the overseer of every single economic decision and transaction in the whole wide world, nothing would ever go wrong. You crazy Austrians don’t ever want things to be nice and just right. Do you really hate mankind?Bob Roddishttps://www.blogger.com/profile/17263804608074597937noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-59496264384763917692011-10-14T23:39:54.790-04:002011-10-14T23:39:54.790-04:00"In Krugman's Wonderland, there are no go...<i>"In Krugman's Wonderland, there are no government programs to promote home ownership, and the Federal Reserve System played absolutely no role at all in helping to provide the massive amount of funds that went into this bubble."</i><br /><br />Plenty of countries had housing bubbles without any CRA legislation. That loose Fed policy and faulty government policy played a role is not in doubt, but doesn't change the fact that a highly ineffective regulatory environment was to blame was mainly to blame.<br /><br />In fact, history just ran an experiment for us. The US allowed itself to have a flawed system of financial regulation, while Canada maintained an relatively efficient one run on the principle of preventing reckless lending and securitization by banks. The result:<br /><br />In 2008, the World Economic Forum ranked Canada’s banking system as the soundest in the world. The U.S. system was ranked at number 40 and Germany and Britain ranked 39 and 44. Canada’s banks have required no bailouts to save financial institutions.<br /><br />Canada’s banks were restricted by regulators from mass securitizing of mortgage debt. Canada’s banks also were prohibited from taking on high levels of leverage to make larger and riskier loans. The Canadian mortgage industry was regulated to maintain high lending standards, instead of lax ones allowing an explosion in sub-prime mortgages. <br /><br />Like most Austrians, you are clueless about what goes on in the rest of the world.Lord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-20439411493302682772011-10-14T11:57:56.040-04:002011-10-14T11:57:56.040-04:00"Yes, you see that the financial deregulation..."Yes, you see that the financial deregulation that began in the late 1970s and was strongly bolstered by DIDMCA in 1980 was the product of Republican rule and ideology. (And Krugman has written that many times, folks, like it or not.)"<br /><br />And looking at DIDMCA in wiki we find the first item on the list is 'It forced all banks to abide by the Fed's rules'. <br /><br />"The fact is that government rules didn’t force banks to make bad loans, and that government-sponsored lenders, while they behaved badly in many ways, accounted for few of the truly high-risk loans that fueled the housing bubble."<br /><br />When I was getting my home loan in the beginning of 2007 I was told that if you can get a fannie \ freddy mac approval then you are basically going to be approved for the loan from the lender (or any lender for that matter) I was working with. <br /><br />I also want to mention that when I was a bank teller back in 1995 they were constantly harping on us to make sure we knew about the Community Reinvestment Act (CRA) because the bank had 'secret shoppers' that would be asking about it. If we didn't reply what they wanted to hear there would be some sort of penalty (but I don't know what).Mike Cheelnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-72767016549744353222011-10-14T11:14:10.561-04:002011-10-14T11:14:10.561-04:00Correct. According to Krugman, all of the governme...Correct. According to Krugman, all of the government programs were based upon sound finance and compassion, but by seeing an opportunity for profit, the banks corrupted everything. So, it is their fault.William L. Andersonhttps://www.blogger.com/profile/01802990642236807359noreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-66223200373561063412011-10-14T10:49:28.109-04:002011-10-14T10:49:28.109-04:00So if Krugman does happen to be correct that most ...So if Krugman does happen to be correct that most of the 'truly high-risk loans that fueled the housing bubble' were NOT government-sponsored leanders, he is still wrong on point because of all the non government-sponsored lenders being forced to create similar products to maintain competitiveness, hoping to still have a seat when the music stops.<br /><br />In this regard, the government lead, and private industry followed...right off the cliff -- but it's private banks' fault because they have more money invested.<br /><br />Do I have the argument right?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6276561747841568697.post-8448738239877381942011-10-14T09:39:55.758-04:002011-10-14T09:39:55.758-04:00Thank you so much for this blog. Ever since Krugma...Thank you so much for this blog. Ever since Krugman started censoring his comments, I've been looking for a another place to find intelligent people discrediting his bs. Thank you.Anonymousnoreply@blogger.com