An Excellent Analysis of the Financial DebacleRobert Higgs • Friday December 19, 2008 1:22 PM PST •
I have just read an excellent report by Bill Stacey and Julian Morris called “How Not To Solve a Crisis,” which is being distributed by the Lion Rock Institute and the International Policy Network and reached me via the Wynnewood Institute. Although I do not endorse every element of this analysis, I recommend it highly because it pulls together the various threads of the financial crisis better than anything else I have read. The report is not dated, but it appears to have been written several weeks ago.
The crisis is ongoing, of course, and nearly every day brings some big new mistake by the U.S. government (and foreign governments, too), but much of the report’s content has enduring value. Especially valuable is its discussion of how various “missing markets” were developing just as the government crashed onto the scene and destroyed these developments before they could begin to operate fully. As President-elect Obama says, “action, and action now.” God help us. Much more government salvation bids fair to create the very Great Depression II that the policies purport to be preventing.
I can’t link the report. Set your browser to search for “How Not To Solve a Crisis,” and you will go to a site that connects you to the pdf.