

Larry Summers and the Subversion of Economics - gamble
http://chronicle.com/article/Larry-Summersthe/124790/

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lzw
The real subversion of economics is at a higher level. This guy is just
exposing (in this article and in his film) the patsy and placing all the blame
on the patsy.

It is the federal reserve and the government that engineered this financial
crisis. It was obvious there would be a housing bubble in (at least to me)
2001, before the bubble really started, when they forced interest rates below
the rate of inflation- meaning lending was incentivized because the cost of
money was below zero.

I knew about it early enough to profit from it on both sides, on the way up
and on the way down.

But the heist of american money was a two-part job. The banks set it up in
partnership with government which created freddie mac and fannie mae-- and
then the governmetn actually stole the money with the bailouts.

If the government hadn't bailed out these banks they would have fallen and
more worthy banks would have grown to take their place.

Instead we have institutionalized corruption. The concept of "to big to fail"
is considered legitimate, and moral hazard is now standard operating
procedure.

So long as everyone pretends like the bailouts where a natural consequence and
not the largest theft in american history.... we're set up nicely for them to
do it again. And again. And again.

I suggest people who are genuinely interested in these things should read The
Creature from Jekyll Island by Griffen. It covers the history of the federal
reserve, and how they play the bailout game every other decade. Each time the
amount is larger and the audacity and greed on the part of government and
bankers is larger... and then when we've forgotten about it, they do it again.

You might be wondering how government profits form this. The individuals in
government profit financially, though of course the money is laundered as
cushy jobs, book deals and campaign contributions... but they also profit by
gaining more power over the economy.

