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20 January 2008

Another similar take on US economic woes

This article, by Paul Krugman in the NYT, is not so in-depth as the WaPo one, but has a similar case to make, particularly:


It wasn’t just Alan Greenspan’s unwillingness to admit that there was anything more than a bit of “froth” in housing markets, or his refusal to do anything about subprime abuses. The fact is that as America’s financial system has grown ever more complex, it has also outgrown the framework of banking regulations that used to protect us — yet instead of an attempt to update that framework, all we got were paeans to the wonders of free markets.

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