Wednesday, September 02, 2009

Plunder and Blunder: The economy

Excerpts from Plunder and Blunder: The Rise and Fall of the Bubble Economy,
Dean Baker. 2008. Polipoint Press.

Holding the incompetents accountable.
“The level of incompetence in high places was and is truly astounding….
In the absence of serious consequences for poor performance, experts have little incentive to question the consensus view. During the bubble years, those who raised questions about bubbles were largely marginalized… The exorbitant pay received by top executives is passed on in higher prices to everyone. The bubbles were allowed to grow only because the people in a position to restrain them failed in their duties… The financial industry proved to be more incompetent and corrupt than its worst critics could have imagined….
Wall street sold these instruments to pension funds and other institutional investors…Knowingly or not, these outlets have covered up the extraordinary incompetence and corruption that allowed these bubbles to grow. “
The stock and housing bubbles have wreaked havoc on the economy and will cause enormous pain for years to come. “
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