Revised and extended links on the financial problem
Four more pieces on the current financial problem that I liked

Hire Rajan and Zingales for your next forecast

Or appoint them to the Cabinet.

From Saving Capitalism from the Capitalists, Raghuram G. Rajan and Luigi Zingales, Princeton Univ. Press, copyright 2003.

Page 1: "Financial markets are among the most highly criticized and least understood parts of the capitalist system."

Page 2: "For at such times [economic downturns], it requires an extremely courageous (or foolhardy) politician to extol the virtues of free markets. . . . Under the guise of making improvements to markets so as to prevent future downturns, political intervention at such times is aimed at impeding their working. . . . and the public, whose future is directly harmed by these actions, stands on the sidelines, seldom protesting, often uncomprehending, and occasionally applauding."

Page 3: "After the longest peacetime economic expansion in recent history, an expansion that has seen the implosion of socialist economies, it may seem overly alarmist to worry about the future of free markets. Perhaps! But success breeds complacency. Recent corporate scandals, the booms and busts engendered by financial markets, and economic hardship have led to growing distrust of markets."

Were they right, or what?

Comments