Sunday, February 1, 2009

It Is Your Fault

Summit County, Colorado

It Is Your Fault

I get up around 3 am or 4 am every morning including Saturday and Sunday. I go to bed at 9 pm so it all works out.

Early this morning I was listening to an interview with Paul Krugman the Nobel Laureate and Economics Professor at Princeton. He attributes the economic downturn to the teachings of Ayn Ryan and the fact that Alan Greenspan followed her in his economic policy. He said that Friedman was warned about the sub-prime housing market and did nothing thinking that it was another boon to the free market.

When asked why even the best economists missed the seriousness of the downturn he said that economists had not considered some organizations as banks. He now defines a bank as any organization that receives and holds funds for investors. Duh.

He too blames the people for not insisting on more regulation of all lending companies. The people were more than happy getting a 10% to 20% appreciation on their housing values each year without wondering where the appreciation was coming from. There was no real value there and we all missed that very important piece.

So according to Krugman if you want to get angry about the economy get angry with the sap looking at you in the bathroom mirror every morning.

I love to think in metaphors or create analogies. This one would be getting in a car wreck and totalling your car. An economist would come up and look at you and the wreck and then tell you to get back in the same car and keep driving it because it is now OK. It is not OK. g

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