It's interesting, I had the thought that it seems like the people arguing against the Zombie bank solution. Famous last words, but we concern ourselves with moral hazard. I like the solution to the moral hazard problem by letting them suffer the zombie bank.
point was, the people who say "let's not do what japan did" are the same people who think that growth is either Inflation, or it's an expansion of leverage.
I know I mock the black helicopter crowd, but maybe 10 years of economic stability(stagnation) is just what we need. Maybe some actual stability could lead to real growth. Instead of suffering this constant BOOM BUST cycle, which "they" keep saying is healthy, and yet we never manage to get healthy.
maybe if we could stabilize and just let some things grow, let the market function for 20 years in a state of equilibrium. Stabilizing Credit, and stabilizing inflation. Maybe, we could... grow.
It's not that the Austrians don't have some good points, It's just that there tends to be tinfoil hats that come with their thesis.
Monday, March 2, 2009
Musings
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3 comments:
What would have been better, investing in the S&P and NAZ in 1996 going all the way up and back down...
...or having a long bond getting 1.5% and not even looking at the stock market?
I meant short or intermediate bond.
This is all so wild.
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