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Prescott Topic in The Credit Debacle Catalog

Ed Prescott (1); wrote Economics Nobel Prize winner Edward C. Prescott (1).

naked capitalism Sun 2009-09-13 12:26 EDT

Guest Post: Top Economists Say We Must Break Up the Insolvent Banks (Government Says Let's Make Them Bigger)

George Washington of Washington's Blog

The following top economists and financial experts believe that the economy cannot recover unless the big, insolvent banks are broken up in an orderly fashion: Joseph Stiglitz, Ed Prescott, R. Glenn Hubbard, Simon Johnson, Thomas Hoenig, Neal S. Wolin, Sheila Bair, Anna Schwartz, William K. Black, et al...And yet, the top economic policy makers (Summer, Geithner and Bernanke)...don't want to break up the insolvent giants or even keep them from growing, don't want to reinstate Glass-Steagall, and want to let the banks keep using their same inaccurate models, overseen by the same spineless regulators.

bigger; break; Government Says Let's Make; Guest Post; insolvent banks; naked capitalism; Top economist says.

Steve Keen's Debtwatch Sun 2009-08-30 20:48 EDT

Debtwatch No. 38: The GFC--Pothole or Mountain?

Cassander

``The Marxian view is that capitalistic economies are inherently unstable and that excessive accumulation of capital will lead to increasingly severe economic crises. Growth theory, which has proved to be empirically successful, says this is not true.'' wrote Economics Nobel Prize winner Edward C. Prescott. Prescott also claimed ``the Great Depression was a conscious choice by American workers to enjoy more leisure, in response to unspecified changes in the labour market'' Apparently debt played no role. The capitalistic economy is stable, and absent some change in technology or the rules of the economic game, the [...]

38; Debtwatch; GFC; Mountain; Potholes; Steve Keen's Debtwatch.

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