Financial Crisis Here to Stay
August 24, 2008 – 4:20 pm by BHOne year in and it looks like we’ll be here awhile, or so says Tyler Cowen in today’s Economic View column (NYT). This part is great:
HAVE you ever tried to undo a bunch of tangled wires or cords? If you don’t pull on the right wires in the right order, the mess becomes worse. If you pull too hard, the whole thing can break. But if your first pulls are good ones, the untangling becomes easier with each move.
That’s like our economy’s situation today.
Bottom line: let the Fed do its thing and be very careful about reforming our current regulatory structure. At this point unintended consequences of new laws would be the metaphorical straw, if you will.
