Wednesday, September 16, 2009

Ben say's Everythings OK! Whew!

Of this, our friend Nassim Nicholas Taleb is sure: “Ben Bernanke saved nothing!” Taleb writes, “He shouldn't be allowed in Washington. He's like a doctor who misses the metastatic tumor and says the patient is doing very well. The first thing I would tell Chinese officials is how can you buy U.S. bonds as long as Larry Summers is there [as head of the National Economic Council]? He's a textbook case of overconfidence. Look what happened to Harvard's finances [when he ran the university]. They took a lot of risk they didn't understand, and it was a disaster. That's the Larry Summers mentality. “Today, we still have the same amount of debt, but it belongs to governments. Normally, debt would get destroyed and turn to air. Debt is a mistake between lender and borrower, and both should suffer. But the government is socializing all these losses by transforming them into liabilities for your children and grandchildren and great-grandchildren.”

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