Bas S
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Bas S commented on Dean Baker on the First 100 Days of Barack Obama on June 11, 2009, 3:24 PM
You can't seriously call yourself an economist if you blame the current course of events on Wall Street. The whole economic boom / bust cycle is caused by artificial interest rates dictated by the Federal Reserve. Other than that, the system incorporation and limited liability is to blame for Wall Street's problems. Greedy and corrupt CEO's are protected by law if they screw up (the biggest lobbyers are the ones with deep pockets). In a real free market system there would be no corporations - people would be personally responsible for their business decisions. Investing in stocks - even long term - is trying to climb an ever growing mountain called "inflation". Inflation (CPI) is understated by 7% yearly, so people actually think they're coming out ahead with a 10% return on stocks. Do you think it's an accident that the Fed no longer publishes M3 growth? Any country where the financial system is run by the government - implicitly (banks) or explicitly (Fed) is guaranteed to be ineffective causing major recessions/depressions like this one to come back with greater force.