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Counter argument: http://econlog.econlib.org/archives/2008/12/madoff_as_metap.html http://econlog.econlib.org/archives/2008/12/madoff_as_metap....
by newt0311 18y ago
Counter argument: http://econlog.econlib.org/archives/2008/12/madoff_as_metap.html http://econlog.econlib.org/archives/2008/12/madoff_as_metap....
- gojomo 18y agoI hardly see that as a counter. Both Kling and Krugman are right! The government is a ponzi scheme, and lots of the financial sector has been ponzi-like, too! (And a point that Kling might make but Krugman tends not to: much of the financial-sector ponzi-ism was propelled by government policy, which inflated the housing bubble with tax benefits, Fed-lowered interest rates, government-sponsored mortgage-underwriting, and regulatory favoritism for dubious mortgage-lending. And policy which then further insulated finance institutions from existential risk with the implied promise -- now delivered -- of giant bailouts.)