Mystic.......Economics? Or........ Pizza?

Chris Whelan may have his own axe to grind (as do we all), but his comments on Paul Volker, in particular, resonate.

http://us1.irabankratings.com/pub/IRAStory.asp?tag=553

[doom&gloom]

Re: Mystic.......Economics? Or........ Pizza?

Chris Whelan may have his own axe to grind (as do we all), but his comments on Paul Volker, in particular, resonate.

http://us1.irabankratings.com/pub/IRAStory.asp?tag=553

As with almost everything in life, he points out how the government gets it wrong time and again.

[jabberwocky]

Re: Mystic.......Economics? Or........ Pizza?

As with almost everything in life, he points out how the government gets it wrong time and again.

The cynic in me sees it differently, at the margin. The "error" is almost always assymmetric, in that it benefits TPTB, at the expense of the unwashed. Volker is much praised here as being courageous in inflicting the US with a severe recession to excise inflation, but he saved banks (Walter Wriston, etc.) while crushing the then described "LDC's". Interestingly, as EJ notes, America's realestate market then began to lead the economy, and become essential, increasingly so, with each iteration. Does anyone else see a pattern here? Of course! Housing is really a utility, a wasting asset, if not rented out, so to have used it to inflate consumption was a monumental error, but one of many.