tag:blogger.com,1999:blog-602664611343971452.post5621929713137894071..comments2024-01-06T08:57:16.475-05:00Comments on Trust Your Instincts: Bernanke says that Great Recession reduced US potential growth rateAnonymoushttp://www.blogger.com/profile/11316888485290662469noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-602664611343971452.post-78802502524780881002012-11-20T14:59:29.103-05:002012-11-20T14:59:29.103-05:00Jesse,
Thanks for the insightful comment.
It is ...Jesse,<br /><br />Thanks for the insightful comment.<br /><br />It is certainly supported by Jeff Connaughton's description of how the Blob (also known as, politicians, financial regulators, Wall Street and its lobbyists) works.Anonymoushttps://www.blogger.com/profile/11316888485290662469noreply@blogger.comtag:blogger.com,1999:blog-602664611343971452.post-34829554897449993252012-11-20T14:39:10.927-05:002012-11-20T14:39:10.927-05:00Choosing the Japanese Model may not be so much an ...Choosing the Japanese Model may not be so much an economic policy choice, but a more compelling decision made on the basis of the credibility trap.<br /><br />"A credibility trap is when the regulatory, political and/or informational functions of a society have been compromised by a corrupting influence and a fraud, so that they cannot address the situation without implicating, at least incidentally, a broad swath of the power structure. The status quo has at least tolerated the corruption and the fraud, if not profited directly from it, and most likely continues to do so. The power brokers have become susceptible to various forms of blackmail. And so a failed policy can become almost self-sustaining long after it is seen to have failed, and even become counterproductive, because admitting failure is not an option for those in power."<br /><br />Jesse, Café AméricainJessehttps://www.blogger.com/profile/10098169118867085623noreply@blogger.com