Wednesday, December 9, 2015
On Ben Bernanke in 2008 Telling the Congress that Unless We Bailed Out the Big Banks Another Great Depression Would Quickly Transpire
Complete and absolute bullshit. a) Most lending in this country takes place outside the realm of Wall Street banks and banks in general (discussed at length in Tom Woods's "Meltdown"). b) Japan and Germany were essentially reduced to rubble during WW2 and within a couple of years (thanks to free market capitalism and NOT the Marshall Plan) both of these economies were percolating (Bernanke apparently thinking that the failure of a Wall Street bank is far more lethal than nuclear devastation and fire-bombing). And c) Governments don't have resources and so the only thing that a bailout does is shift the money from point A (which is probably sound) to point B (which obviously isn't sound).......I think that we just have to face it here that the modern economics profession is insane (save for the Austrians and a handful from the Chicago School) and what's even more frightening is that mindless politicians (Pelosi, Boehner, Lott, etc.) continue to lap this elixir up (not the least bit surprising in that cronyism surges through their veins) and think that they're accomplishing something.