When Zombie Banks Walked the Earth 0
Dean Baker in The Guardian:
The elite economists tell us that even if this idea might offend our sensibilities, it is the only way to get the economy going again. This is where a little basic economics would be useful again.
(snip)
In other words, the arithmetic shows that a bank fix, while desirable, cannot possibly be sufficient to offset the collapse of the housing bubble. If our priority is to save the bankers from suffering the consequences of their own mistakes, then it makes sense to throw all our money at them. But if the point is to fix the economy, then we have to look elsewhere.
Those of us who know economics recognise this fact. Those who insist on the bank-fix route should be asked one simple question: “When did you stop being wrong about the economy?”
