Paige says:
I liked this video and on youtube I found a critique I thought would add to the discussion…what do you think?
Paige says:
http://www.youtube.com/watch?v=NJGAs2KwoWk there is the link bahaha!
lester says:
very much disagree with Mr Harvey as to the nature of the problem.He mentions greenspan only in passing. Greenspan is at the begining middle but cleverly on his part not the end of the story. He kept the interest rates too low for too long. as always, it fueled a boom and in the boom malinvestment occured.
That’s it. There’s no animal spirits, or cultural whatever. the market players responded to the easy money as they always do. The above explanation is elaborate and clever but ultimately useless. I notice he also glosses over Greece. Why?
well because they are suffering under their massive welfare state, the exact sort of thing he as a marxist would prescribe as a solution. central bank inflation and welfare statism are the same side of the coin. Both are (allgedly)well meaning but ultimately harmful intervetions into the market.
He’s on point about the home ownership obsession in the US, that was what directed the malinvestment. Again though, this was a govt initiative.
Interesting presentation though and liked the drawings.
jon says:
that rebuttal video is kind of terrible, here’s a debunking of it http://theredrock.wordpress.com/2010/07/13/on-the-critique-of-dr-david-harveys-explanation-of-the-economic-crisis/
harvey is spot on in the first instance
David says:
This reminded me of a BoingBoing TV subversitve sock Puppet show. Kiki and Bubu, the socked crusaders, explore the impending collapse of the American economy. (grin and bear the first two minutes…that’s when it gets deep)
http://www.boingboing.net/2008/08/06/bbtv-monochrom-econo.html
