I have not had much to say here over the last few weeks as work has been pretty intense. In the mean time, for those of you more interested in monetary questions, head on over to the Daily Kos for a good read on Hayek vs. Keynes.
Great quote from the piece – “Trying to cure a recession with more cheap credit is like trying to cure chemotherapy with more cancer.
2 comments
2 March, 2010 at 17:34
Sonia King
Do you think that the bank’s and commercial lenders in general do enough to train and monitor and incentiv’ise their commercial lending teams such as credit analysts and relationship manager’s? Perhaps the emphasis on finding new borrowers and lending higher volumes in the millions has been a contributing factor to the problems we have been facing.
6 March, 2010 at 19:48
philipthomas
Cool video, thanks.
To Sonia’s point, I believe the seeds of the next downturn at already being sown in the decision models and incentive programs that continue almost unchanged in the FI’s today. It is in their nature, and there are today no obvious alternatives.