Tuesday, January 19, 2010

System failure (4)

The last few weeks of political developments around the American-European financial system make us feel like we are back in the USSR. During the final years of communism’s decline, Soviet bureaucrats argued for futile tweaks to laws that would crack down on speculators and close “loopholes” – all in the vain hope they could keep the unproductive system of incentives intact. The US, UK and key European countries are now making the same error.
-- Peter Boone and Simon Johnson

Related: System Failure (3), (2), (1)

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