[ExI] Sudden outbreak of democracy baffles US pundits

Stathis Papaioannou stathisp at gmail.com
Sun Oct 5 08:23:01 UTC 2008

2008/10/5 spike <spike66 at att.net>:

> I suspect this bailout solution will solve nothing, for it leaves in place
> the root cause: government requirements on banks to give out what they
> already know are bad loans.  I find plenty of good explanations in the
> internet commentary, but almost nothing in the mainstream press.

Why not simply admit that boom/bust cycles are a natural part of any
market system? Leave things alone, and there will be a depression. In
a decade or two when people have forgotten about 2008 they'll start
bidding up the price of shares and property, banks will start lending
again to get a slice of the long-awaited recovery or risk falling
behind and being taken over by more adventurous players,
high-regulation governments and central banks will be under pressure
to loosen things up in the interests of boosting economic activity,
and the whole thing will start again.

Stathis Papaioannou

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