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Politics

The end of the 'confidence fairy'

33 replies

breadandbutterfly · 20/05/2012 17:25

www.nytimes.com/2012/04/27/opinion/krugman-death-of-a-fairy-tale.html?_r=1

OP posts:
amicissimma · 20/05/2012 18:29

This reply has been deleted

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claig · 20/05/2012 18:06

They tell us that if we tax their transactions, that it is poor us who will have to pay anyway. But what's new? That's always the way. Rather tax them at source than let them come back to us, cap in hand, after they have backed the wrong horse.

claig · 20/05/2012 17:59

But that would not be austere, it would bring an end to fear and would raise a cheer, but the austerians say the cost is too dear, we must not encourage the bankers to leave the country or tax their transactions, it is better to keep them here.

edam · 20/05/2012 17:58

(Although to be fair the US has seen massive cuts in public spending at the same time - but in the areas where stimulus has been used, it has worked.)

edam · 20/05/2012 17:56

you are a Keynesian, Claig. Sadly the leaders of Europe have stupidly ignored the lessons of the last great crash, unlike Obama who did use a stimulus package, with the result that the US is doing rather better than us.

claig · 20/05/2012 17:53

Yes, that is sheer brilliance.

I was driving past acres of fields the other day, and it made me wonder. Instead of loaning billions to banks, why couldn't they loan a fraction of that to building companies and get them to build houses and schools and hospitals to get the economy moving, to create employment and to provide better facilities. The building companies would be able to pay them back with interest over a decade or so, and there would be no fancy bonuses for builders as opposed to bankers, and no systemic risks and no more billion dollar bets gone bad that require bailouts.

breadandbutterfly · 20/05/2012 17:48

I loved that phrase too - one of those you wish you'd come up with.

OP posts:
claig · 20/05/2012 17:46

Good articel. Contains a brilliant phrase - "reign of error" Smile
You have to laugh or else you'll cry.

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