Friday, April 25, 2014
Some mental stimulation
Solow, Piketty and the problem with bank bailouts and deposit insurance
Something to ponder on, applies equally to the housing market as well as the nation state i.e. for market capitalism to work, the state will have to be willing to see periods of (potentially ever-escalating) disruption to the lives of ordinary people as the price for preventing the wealthiest being pure passive rentiers. It is not (and morally cannot be) the job of the state to keep the rich rich, even if by doing so the state softens the impact on the poor of the rich becoming poorer.
Posted by enuii @ 07:08 PM (4522 views)
One thought on “Some mental stimulation”
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stillthinking says:
Well put. As we all know the losses were spread out over all sterling holders rather than those over 85K. The (re)segregation of banking accounts is the answer but then all credit priced assets tank.