Harry Long

The Unintended Effects of Bad Policy

Ferdinand, fair point. However, if we agree that economic structures should be robust, their foundations should no more rest upon psychology than should skyscrapers. Their constuction should rest upon sound principles. I am not sure that entrusting the fate of a nation to the individual talents of two men, no matter how intelligent, logical (or not) is a sound bais for societal success.

We should make points of stress as robust to failure as possible. Two men are not a robust structure.


On May 18 10:33 AM Ferdinand E. Banks wrote:

> Interesting article. The problem is though that it assumes that Ben
> and Larry are boneheads. I'm not comfortable with that assumption.

The Unintended Effects of Bad Policy

Jambo, than you for you comments. While we all shudder to think of the Japanese experience, I think the public's vociferous denials that it could ever happen to us are more a function of a psychology of denial than of objective reasoning.

Ostriches never avoid danger, just get a head full of sand.



On May 18 01:47 PM jambo wrote:

> Staggeringly concise Harry. I loved "America's profligate borrowing
> cannot rest on a nebulous concept of our specialness." Finally, 'smoke
> and mirrors' has been defined!
> This something for nothing supposition that zero interest rate and
> a modicum of inflation is a good thing, is, has been and always will
> be B.S. and invoking Japan's history in the great Yen carry trade
> fiasco is the perfect proof.
> Well done, thank you.