The Meltdown

[a_steep_hill]

Interesting: Herman Daly's analysis of the underlying problem is essentially exactly the same as mine.

He also has a longer piece on the idea of a steady-state economy. I haven't read it all yet, but it looks pretty interesting so far.

Comments

[siliconshaman]

If I read that correctly, what he's saying is that 'virtual' money has out-grown real money [ie money tied to actual stuff with value].

Which would mean that the Treasury and The Bank of England printing more 'virtual' money by borrowing against taxes to dump into the system by bailing out the banks is going to make the situation worse, not better.

Umm.. isn't this what they call a lose-lose situation?

[a_steep_hill]

A-yep! That's right.

Stupid thing is, the current state of the financial industry, and particularly the credit markets, isn't the problem at all. It's just another symptom -- the natural immune response to being so badly out of whack. Now, an out-of-control immune response can kill you; I'm not suggesting that we could necessarily afford to let Wall Street eat it. But the current approach, which treats the credit seizure as THE problem, is totally bass-ackwards.

[galactic_dev]

Cool article! Thanks.