The Quiet Coup

THE CRASH HAS LAID BARE MANY UNPLEASANT TRUTHS ABOUT THE UNITED STATES. ONE OF THE MOST ALARMING, SAYS A FORMER CHIEF ECONOMIST OF THE INTERNATIONAL MONETARY FUND, IS THAT THE FINANCE INDUSTRY HAS EFFECTIVELY CAPTURED OUR GOVERNMENT—A STATE OF AFFAIRS THAT MORE TYPICALLY DESCRIBES EMERGING MARKETS, AND IS AT THE CENTER OF MANY EMERGING-MARKET CRISES. IF THE IMF’S STAFF COULD SPEAK FREELY ABOUT THE U.S., IT WOULD TELL US WHAT IT TELLS ALL COUNTRIES IN THIS SITUATION: RECOVERY WILL FAIL UNLESS WE BREAK THE FINANCIAL OLIGARCHY THAT IS BLOCKING ESSENTIAL REFORM. AND IF WE ARE TO PREVENT A TRUE DEPRESSION, WE’RE RUNNING OUT OF TIME.

By Simon Johnson

Read more: http://www.theatlantic.com/magazine/print/2009/05/the-quiet-coup/7364/

Financial Investments and Economic Investments...

Rich Republicans want very much to believe that the money they put into 'savings' or 'investments' is doing all kinds of wonderful things for the economy.  Unfortunately, this belief is based on little more than wishful thinking.  To understand why they are so very wrong, people need to understand the difference between financial investments and economic investments.