Tuesday, October 28, 2008

The Lessons of Greed

by Thomas Fleming

I am not an economist. I do not want to be an economist, because I do not believe there is a science of economics, and from all I can gather there is no kind of economics being practiced today, at least in high official circles, except "voodoo economics." If I were wrong, then there would have been a consensus of economic experts on what would happen if, say, Congress deregulated the mortgage industry and encouraged lenders to issue mortgages for hundreds of thousands of dollars to people who might not be able to buy a cheap used car from Sleazeball Joe’s No-Money-Down used car lot.

[...] I may not know much about economics, but I know a thing or two things that Allan Greenspan does not know. It turns out that his inability to speak clearly is a reflection of his inability to think at all. He apparently believed his own free market rhetoric about open competition, and it is equally apparent that he did not read the the unabridged version of The Wealth of Nations in which Adam Smith explains that capitalists always seek to form, by fair means or foul, monopolies and cartels.

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