Skip to main content

View Diary: Geithner and his pseudo liberal critics (231 comments)

Comment Preferences

  •  One piece of bad history. (2+ / 0-)
    Recommended by:
    Pale Jenova, ozsea1
    "And even if banks were smaller - as the banks that collapsed in 1929 and in the S&L crisis were - the need for government action outside market values remains."
    Banks in the U.S. did not collapse in 1929.

    It took a couple years of Hoover/Mellon & Friends representing religious sentiments as economic thinking and then acting on it as policy to trash out the banks.

    Also, why no mention of Richard Koo.

    He defined the Balance Sheet Recession phenomenon. His work on debt-strangled corporate malfunction is what underlies basically all of modern economic analysis of these crisis situations.

    Before Koo, nobody built a database with the balance sheets of the corporations. Sounds kinda funny to think of doing that now. Mixing micro with macro ain't all that hard.

    Be like going navigating at sea without a compass.

    "Have you left no sense of decency, sir, at long last?" Army Attorney to Sen. McCarthy, 1954. "We have done nothing to be ashamed of. We have nothing to apologize for." NRA 12/14/2012.

    by bontemps2012 on Mon Feb 04, 2013 at 07:02:39 AM PST

    •  not so (1+ / 0-)
      Recommended by:
      bontemps2012
      Some 650 banks failed in 1929; the number would rise to more than 1,300 the following year.
      in any case, the point is that smaller banks do not resolve the issue of systemic effects of financial crisis.

      self-appointed intellectual cop

      by citizen k on Mon Feb 04, 2013 at 07:09:45 AM PST

      [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site