Friday 127

Mortgaging the nation

Filed under: Economy, Politics, Society — Tags: , , — zundel @ am

Obsessive Housing Disorder” by Steven Malanga in City Journal Spring 2009

The program could not work because it tried to solve a problem of wealth creation through debt creation.


Tuesday 322

Long-term albatrosses

Filed under: Economy, Politics — Tags: , , — zundel @ am

Good to read Friedman in these times:

On G-20 and GM: Economics, Politics and Social Stability by George Friedman in Stratfor 2008-11-17

short-run solutions can easily become long-term albatrosses.

So, we can bailout the US car manufacturers and spare the economy the consequences of many unemployed workers and devastated suppliers, but thereby we postpone much too long needed improvements in the industry.

I suspect the difficult, wise, and unlikely approach would come in supporting the employees and suppliers, and letting the industry fall-down to an appropriate size. But GM, Ford, Chrysler, and the UAW want to keep as much as they can, and get as much as they can, though it will saddle the US with an obsolete industry. Does anyone lobby for the wise choice?

(I drive a Toyota.)

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