Just looking at the Roubini book, and it's obvious that the debate about the causes of this crisis is not getting anywhere. It's just a shouting war now, and here are the positions.
1. It's the government's fault. Right wing version focuses on Community Reinvestment Act and Fed policy 2. The problem is distribution. Left wing version: policy backed upward redistribution left working class poor, and it relied on debt and promise of home equity; those debts were securitized and investors gobbled them up because it made no sense to invest in expansion of production, given the stagnation of incomes. Special attention is given to distributional inequality in China giving rise to the global savings glut. 3.
_______________________________________________ pen-l mailing list pen-l@lists.csuchico.edu https://lists.csuchico.edu/mailman/listinfo/pen-l
