What if the "smart money" guys are all dumb as a box of rocks?

Sarah's picture

What if offshoring isn't the boon the corp execs expected? What if investment vehicles (read complicated boondoggles designed to move money from the middle and lower class into the upper class' pockets via expensively-furnished con jobs run out of the 'credit economy') really don't do anything useful?
Well, then you get what is happening now on Wall Street.
Which looks, to this un-initiate (thank you FSM) like the chickens coming home to roost.
Jared Bernstein is an economist. This is his take on it:

A statement from EPI senior economist Jared Bernstein on the financial market meltdown

“There’s a silver lining to this crisis on Wall Street, if we’re smart enough to recognize it. The markets are sending an unequivocal signal that we need to change the way we do business. That means greater transparency, more responsible lending standards, sensible capitalization levels, and, above all, a more balanced approach toward risk. To clean up the mess yet ignore this deeper signal would be fatal to our financial markets and our hopes for an ultimate recovery.”

Not all progress is forward, boys and girls.
Time to go back to the policies that, for nearly 70 years, kept the country solvent, methinks.
Looks like at least a few economists think so too.

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elixir's picture

Well put. All we need is someone to champion this. Who?

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