When Paul Krugman talked about the necessity for greater capital controls seven years ago in The Return of Depression Economics not many paid attention. Among the points he made was we have an obsolete global economic system that’s not prepared for today’s financial "innovations."
Today that system is starting to crumble. And no one – especially the so-called “experts” – really know what’s going. Many are pointing to the housing market boogeyman as the culprit. The real problem is much deeper. According to Krugman it’s so deep that “nobody knows where the financial toxic waste is buried.”
For my part, I think two of our major problems stem from (1) a belief in “deregulation” for deregulation’s sake (i.e. laissez faire economics), and (2) the Federal Reserve working to protect George Bush’s economy rather than the integrity of the dollar. For now, take a look at Paul Krugman’s latest masterwork.
Rest assured, I will be discussing the financial and economic problems we face in the future.
- Mark
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