Friday, July 17, 2009

Some Bad Sachs Advice...

from Paul Krugman,

Krugman has a column out today, The Joy of Sachs. It's amazing, but he doesn't have even one good Sachs position.

He claims Ronald Reagan deregulation somehow caused the growth of what he dubs "finacialization" of the economy.

Wrong. The boom/bust cycle existed and was studied for decades long before Reagan became president, even before Reagan was only a B actor in movies like, Bed Time for Bonzo.

He believes the bailout was necessary, but that more regulation is now required.

Actually, as should be obvious, the bailout was good for Sachs, and that's about it. Paying for Sachs was the problem. Not regulating Sachs.

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