Home > Central banking, Mainstream failure > NYTimes gets an “F” in economics

NYTimes gets an “F” in economics

Isn’t this embarrassing?

These guys are so stupid it hurts:

“This will not do. It is nigh impossible for economic recovery to take hold when credit is sputtering as it is. For the Obama administration’s financial strategy to be a success, the banks must do more than survive. They must lend again.”

Banks will lend again when they find creditworthy borrowers. Borrowers will only borrow when they see opportunity for capital gains/profits. Capital gains/profits come from appropriate (market based) pricing of assets, capital and labor.

BUT: Govt is desperately, insanely, trying to prop up asset prices AND AT THE SAME TIME trying to encourage banks to lend.

THESE ARE INCONSISTENT AND MUTUALLY EXCLUSIVE GOALS YOU IDIOTS.

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