Wednesday, August 3, 2011
Articles: The Dirty Little Secret of Economics: "But mainly governments continued their bad old ways of subsidizing the powerful and shoveling cheap credit at political favorites. It's the way of the warrior. You gather up a raiding party with the promise of spoils and plunder, and then after the election, er, raid, and a nice little bit of rapine, you distribute the spoils among your supporters. Unfortunately the policy of plunder and cheap credit leads to runs on banks, panics, crashes, and the inevitable recession during which the suckers are gently relieved of their bankrupt assets, and bottom-feeders build a new base for economic growth. "