Wednesday, January 14, 2009

"The Pattern"

With the government making so many mistakes these days, it can be hard to keep track of it all. Luckily, Arnold Kling at EconLog has helped us out with a handy graph (and some spot-on commentary).
ActorThe PromiseThe Reality
Financial ExecutivesBrilliant Risk ManagementCatastrophic Losses
Eliot SpitzerMr. Clean, Financial ReformerCelebrity Prosecutions, Real Abuses Untouched, and Not So Clean
Sarbanes-OxleyFinancial ResponsibilityLarge Costs, No Apparent Benefits
Basel Capital StandardsInternational Coordination, Sound BanksWorldwide Banking Collapse
Fannie, FreddieStable Mortgage CreditFed the Boom, Stuck Taxpayers with the Bust
TARPUnclog the Financial SystemZombie Banks
Big Fiscal StimulusPut the Economy on a Better PathWait and See

The pattern is big egos, big money, and big power offering big promises, getting big media play, and making big mistakes (Spitzer's mistakes were relatively small, to be honest). To me, the fiscal stimulus represents yet another redistribution of power away from ordinary people and toward the elite, when already the imbalance is too high. I am more worried about rot at the top of society than at the bottom.

1 comment:

Joseph Mises said...

I already know what's going in the last "Wait and See" box.

"The Greater Depression"