Tuesday, July 6, 2010

Excellent Joel Geier piece on the Crisis

The capitalist state, not the market, produced stabilization, the end of the free-fall, and the start of a recovery. However, the fundamentals of the capitalist economy are so weak that there is no confidence that if the state were to withdraw stimulus that recovery could be sustained. The fear is that if the “free market” was left to its own solutions, and government stimulus sharply curtailed, demand would collapse, renewing recession. All of this has to be subtly presented so that faith in “free enterprise” is not excessively undermined.
Read it here.

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