Tuesday, December 16, 2008

Is this creativity? 

This is worrisome. US federal reserve chair Ben Bernanke apparently thinks this economic crisis must be just like the last economic crisis because that's the one he studied. I don't get the sense that he actually knows what's happening in THIS crisis, rather that he is cutting interest rates because that's what he thought might have helped in Japan a decade ago.
And about the US Fed cutting interest rates to zero, Paul Krugman says:
Seriously, we are in very deep trouble. Getting out of this will require a lot of creativity, and maybe some luck too.
Don't hold your breath. If there is one thing that we can rely on with the Bush administration, it is ideological, rigid, incompetent decision-making.

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