The Nationalization Train Has Left The Station
Global Economic Trend Analysis
Mike Shedlock
Tuesday, February 17, 2009
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Those who think Greenspan is the "high priest of laissez-faire capitalism" have holes in their heads. The very existence of the Fed and its micro-mismanagement of interest rates is in direct conflict with capitalism.
The Fed directly setting interest rates is more like the failed policies of the Soviet Central Planners than anything remotely to do with capitalism.
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Everyone proclaims the Swedish nationalization "worked". However, correlation is not causation. The miracle Swedish recovery is more likely to have stemmed from a global economy that was starting to boom and strengthened by an internet and productivity revolution in its early stages, than a brilliantly executed nationalization plan.
Here's the deal....
1. You cannot save a village by destroying it.
2. You cannot save capitalism by destroying it.
3. You cannot save a free market when you don't have one in the first place.
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Full Article Here:
http://globaleconomicanalysis.blogsp...t-station.html
Can Tax Cuts Deepen The Recession?
Mike Shedlock
Wednesday, February 18, 2009
In one of the more ridiculous Keynesian theories to date, Gauti B. Eggertsson at the New York Fed comes to the conclusion Tax Cuts Will Deepen The Recession. Simple logic would dictate that letting people and businesses keep more of their money would be a good thing but amazingly Eggertsson comes to the opposite conclusion.
The belief is based on a bunch of incomprehensible (to the non-economist) equations such as this one....
Article continues here:
http://globaleconomicanalysis.blogsp...recession.html