kerrin
12-16-2008, 07:37 PM
In a recent talk at Fordham University, John Nash spoke about the current 'debt crisis.'
http://www.fordham.edu/Campus_Resources/eNewsroom/Archives/2008/archive_1377.asp
Excerpt:
Nash said that various interest groups that subscribe to Keynesian, or short-term, economic theories have sold the public on the notion that inflation is acceptable or that “bad money is better than good money.” Such a notion, he said, led to the dangerous proliferation of bad mortgage loans—loans made on the gamble that house values would continue to rise and eventually turn a profit.
“A fixed-rate 30-year mortgage would be reasonable under the gold standard,” Nash said. “Now, there are variable rates, and adjustables, and convertibles, and it is very complicated” for homeowners to figure out what they are getting into. In fact, Nash said, nobody really knows the depth of the financial crisis.
He seems to blame Kaynesians and the fiat monetary system, no?
http://www.fordham.edu/Campus_Resources/eNewsroom/Archives/2008/archive_1377.asp
Excerpt:
Nash said that various interest groups that subscribe to Keynesian, or short-term, economic theories have sold the public on the notion that inflation is acceptable or that “bad money is better than good money.” Such a notion, he said, led to the dangerous proliferation of bad mortgage loans—loans made on the gamble that house values would continue to rise and eventually turn a profit.
“A fixed-rate 30-year mortgage would be reasonable under the gold standard,” Nash said. “Now, there are variable rates, and adjustables, and convertibles, and it is very complicated” for homeowners to figure out what they are getting into. In fact, Nash said, nobody really knows the depth of the financial crisis.
He seems to blame Kaynesians and the fiat monetary system, no?