| | Notice Charlie Rose's assumption that capitalism doesn't have a set nature. (Ed T.) I believe you are too harsh on Charlie. He is doing an interview. Moreover, there are different levels of abstraction. At a high level capitalism could remain the same, while at a lower level it does change in terms of market structure, e.g. more service and less manufacturing. Of course, Geithner does mean more government intervention.
The video is available here.
I am not impressed by Geithner. He is a thorough statist and interventionist. He fully subscribes to 'too big to fail', with the firms' incompetence, and why they got that way, being irrelevant. His ideas are incoherent. He teems with leftist political spin.
[TG] If they are able to get financing from the government, because, again, that financing’s not available now, so that’s the -- one of the kind of important things that governments have to do in a financial crisis. Because again, you know, a financial crisis reflects an unwillingness by the private sector to take risk because of uncertainty and things that they just can’t do in that crisis. And that’s why governments have to step in in financial crises and take risks the market would otherwise not be prepared to take. So with financing, we’re confident you’re going to see private investors come in and put some capital to work to sort of unfreeze these markets.
In other words, if the private sector is unwilling to undertake undue risk (probable losers), then the government must.
[TG] Well, you know this crisis is caused by lots of things. It is caused by a bunch of very irresponsible judgments by the financial system, but it’s also ... by individuals, too -- by individuals running these institutions, but if you look at the amount the American people were borrowing relative to income, you just had a huge unsustainable rise in the basic debt obligations of the American people.
TG has no blame for the government!
|
|
Will capitalism be any different?
