What really shakes my Bank

Arnold Kling suggests Someone write a book about Freddie Mac. I would suggest Readers ignore the potential book, and simply read Arnold’s Post; which actually details the motivation behind the transgressions, and the futility of assigning culpability. The Memo was generated by people whose only Interest was covering their ass, and assisted throughout in the degradation of the financial instruments. I remember well that all 30,000 German Labor, Concentration, and Death Camp Guards insisted it was all Hitler’s fault. Syron initialed few of those instruments, and undoubtedly wrote none of them. There are Those who insist that ethics must come from the Top, but One has to ask what Organization Training can achieve in such manner, as subordinates rise.

We are again back to the Question of what Economists are for, and why do they so often not do the job, whatever it is. I will try to give the Reader a Hint: Economists should determine the viability of existing systems, and whether there is sufficient Resources to maintain the performance of said Systems. Such assertions may too grandiose for John Whitehead, and I acknowledge that statistical accounting error starts with gross data, and extends through model processing. Still, Economists should be able to answer some of the great Questions of the Age, like will We still be driving fossil fuel vehicles in 50 years, and if We are, where does the Oil come from in the matrix of the World economy. Deny it thrice, but there will be Those who demand an Opinion Paper.

Felix Salmon seems overly irrate at Alan Greenspan, but it basically appears to be on account of his approval of the current Bernanke policy. I tend to agree with Felix that Greenspan may be Senile before his Time, though I disagree strongly with the Bernanke policy. The Fed funds rate should be at 4% today, and should stay that way forever. Economics’ dedication to Margins stands as great Overkill, extracting a few extra Dollars out of the Boom, and saving a few extra Dollars from a Bust. It lacks real power, though, in any alteration of the Conditions which develop Boom or Bust. Sound Banking practice suppresses far more of the Conditions which threaten a Boom, and does soften a Bust. Tampering with the solidity of Banking practice afflicts every aspect of the Economy, and protects almost nothing in the long-run. We do not need intricate, new policy initiatives for Banking, simply the good old plodding practice of Old. lgl