When the facts change, I change my mind. What do you do? -- John Maynard Keynes

Wednesday, October 26, 2011

What were they thinking? Magical thinking!

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I follow Paul Krugman regularly and not because I necessarily agree with him, but to get his view of things.
Today he nails it re: Europe and the continuing "crisis" and the roots thereof:

Forgetting Can Hurt You Badly. . . the creators of the euro essentially threw away hard-won wisdom — stuff that Bagehot knew in the 19th century! — to create a stripped-down central bank without the powers or flexibility that history has shown are necessary (lender of last resort). What were they thinking?. . . supposedly sober, serious people are actually radicals insisting that we can make the economy work in ways that it has never worked in the past — hence the embrace of magical thinking on expansionary austerity and the power of structural reform. . . . which is why we’re in the state we’re in.

It's just more of what I've said before.


The Big Picture

Financial Crisis - The Telegraph

JohnTheCrowd.com | The Sailing Website

Craig Newmark - craigconnects