The Road to Utopia leads through Dystopia

According to Paul Krugman in today’s NY Times,

In a 1963 essay for Ms. Rand’s newsletter, Mr. Greenspan dismissed as a “collectivist” myth the idea that businessmen, left to their own devices, “would attempt to sell unsafe food and drugs, fraudulent securities, and shoddy buildings.” On the contrary, he declared, “it is in the self-interest of every businessman to have a reputation for honest dealings and a quality product.”

Wonder what the mortgage crisis does for Ron Paul‘s chances?

Published by

Ragged Clown

Based in San Jose, California

2 thoughts on “The Road to Utopia leads through Dystopia”

  1. Aren’t those that sold shoddy mortgages being dealt with without the need for gov’t intervention? Heads are rolling across the finance industry. Are The Problems more due to fraud (for which there are presumably existing laws) or the failure of individuals to understand and meet their commitments?

    Courting the math challenged vote by insisting lenders freeze ARM rates is one road to White House, of course.

  2. I’d guess that the vast majority of people experienced over-enthusiastic sales pressure rather than fraud.

    If the mortgage crisis ends up just weeding out a few people who shouldn’t have been borrowing and a few who shouldn’t have been lending the market might deal with it in its own brutal fashion.

    I expect that a few trees will get ripped up with the weeds though.

    Agreed on the freezing ARM rates bit.

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