Category: Bailouts, Video

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

6 Responses to “Richard Koo: How the West is Repeating Japan’s Mistakes”

  1. Nuggz says:

    “Not beholden to an ideology”….Interesting.

    Do you think 80 years of anti-intellectualism i.e.fundamentalist Christianity in the US had an effect?

    Simply look at the current line-up of GOP presidential candidates.

  2. dhuv says:

    So if the problem is a debt-based monetary system, why not put our energy into moving away from that.

    I do not understand how going deeper and deeper into debt in order to keep the economy going is good for the country or its citizens.

  3. DerryBrown says:

    I was listening to this while doing other things. Can someone help me to understand something please; Japan got it right with how they kept GDP growing so China did the same. He says they used massive stimulus – how is this stimulus different to EQII?

  4. quaternion says:

    Derry, Richard Koo’s point is that in a balance-sheet recession, stimulus via QE2 doesn’t help because banks can’t pump money into the economy via borrowing because all their resources are going into de-leveraging. The only way to pump more money into the economy is via fiscal stimulus, which proved very effective for China and was at least holding the line for Japan from the inception of its balance-sheet recession in 1989 until it was (foolishly) abandoned in 1997.

    I think Richard Koo’s points are well-taken, but he doesn’t explain how the U.S. should apply stimulus in light of its considerable sovereign debt. True, our debt isn’t nearly as high as the PIIGS countries, but there are still clearly limits to how much fiscal stimulus we can afford.

  5. socaljoe says:

    Let’s not be fooled by the smoke screen. The real objective of ZIRP/QE is the transfer of wealth from savers to borrowers, or owners of underwater non-performing debt… for example, large US banks. In that, I fear, it will be effective.