tag:blogger.com,1999:blog-6959751201989948904.post3124509927979466322..comments2023-10-16T08:12:48.795-04:00Comments on Uncommon Liberty: What if the Mortgage Companies Failed?Unknownnoreply@blogger.comBlogger3125tag:blogger.com,1999:blog-6959751201989948904.post-82189069769081144692008-08-15T22:57:00.000-04:002008-08-15T22:57:00.000-04:00As Adam Smith put it "there is a lot of ruin in a ...As Adam Smith put it "there is a lot of ruin in a nation". As North Korea and Zimbabwe demonstrate you have to work really hard to screw an economy up.<BR/><BR/>Basically, as long as prices are free to adjust things will sort themselves out, sooner or later.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6959751201989948904.post-9512767665155063802008-08-15T09:50:00.000-04:002008-08-15T09:50:00.000-04:00We don't have inflation...yet. All of us monetari...We don't have inflation...yet. All of us monetarist inclined folks in the U.S. are a little uneasy. Bernanke hasn't yet exhibited a particularly steady hand at the tiller, and seems at least marginally less anti-inflation than his predecessors Vlcker and Greenspan. If the economy doesn't warm up soon, he may feel pressure to do something foolish.<BR/><BR/>As to the banks failing, perhaps we James Hanleyhttps://www.blogger.com/profile/18431950784819780004noreply@blogger.comtag:blogger.com,1999:blog-6959751201989948904.post-49951913086299988152008-08-14T02:08:00.000-04:002008-08-14T02:08:00.000-04:00Thanks for the discussion. I think the essential ...Thanks for the discussion. I think the essential difference from New Zealand's mortgage industry is that we don't have mortgage securitisation, so the banks hold on to the mortgages they create.<BR/><BR/>I think you are right that the indirect effects are the important ones. Banks failing for making mistakes is just life. Banks failing because other banks have failed is contagion. The troubleAnonymousnoreply@blogger.com