The Quiet Coup - Baseline Scenario’s Simon Johnson

Baseline Scenario’s Simon Johnson, former Chief Economist of the World Bank, explains why our crisis is so similar to emerging market implosions of the past:

Easy read format :

IMHO, this is a fantastic (if long) read. Found on Option ARMageddon

From that article…

Sounds quite familiar does it not? “Ireland Inc” indeed…

Ahem, viewtopic.php?p=206185#p206185

Still feel it’s histrionical, the edge? Because I have accepted that this is what we are. The lese-majesty row of the last few days has only confirmed it for me.

Some interesting observations but I dont buy the regulatory capture argument.

Having see the train wreck of the California electricity Crisis unfold up close during the late 90’s and early '00 I just dont accept for one moment the weasel words of the politicians. The whole “those bad industry special interests” made us write the regulations and run the regulators the way they did

If you dig deep enough in these situations you will always find the same story. The politicians drafting the regulations and controlling the regulators were told in no uncertain terms by informed parties that if the regulation or regulators were framed in a certain way grief would ensue. Often the exact sequence of events leading to the final debacle would be explained to the politicians in great detail.

The politicians as a group chose to ignore the warnings and go ahead with the flawed regulation and regulatory framework deciding that the short term gains at the polls was worth the gamble that the warning were wrong (which the never are in the long run) and that the final blow up would happen on someone elses’ watch. Politicians did not want to face the truth because they knew the current electorate did not want to hear the truth.

So we have now just had the ‘boomers’ crash, pretty much just like it was predicted by informed parties back in the mid 1980s’. Although almost all the scenarios I read back then underestimated the pathological short sightedness of the politicians elected by the boomer in the interim. But eventually, as so many have discovered in the past, demographics is destiny.

Thats a pretty decent critique of the flaws inherent in the democratic system

Wow. It really does. Nice to know the banking guarantee is an old Russian technique.

Excellent article. Its rare these days that I read something I dont already know. This is one of them. I like this quote.

Great article, I also learned stuff from it which doesn’t happen often in todays media.
It should be required reading for all the politicians in countries such as ourselves that are in trouble. Hopefully some journalists will pick in up and put in into our mainstream media

Bill Moyers interviews Simon Johnson(20mins)

Is America the new Russia?
By Martin Wolf … ck_check=1

Mr. Johnson’s testimony before the joint economic committee of the US Congress: … &viewMode=

On regulators and business elites:

Post of the Day JMC! 8DD

Um, the day being 28 March? :smiley:

For me :smiley: it made my day, now sing “nothing else matters…” :smiling_imp:

Oh, allright, but I don’t think you’ll like the result…

“So close no matter how far,…”

Oh Yeah, €10 decent bottle of white in this weather!

Winner of Prospect magazine’s (?) top 25 intellectuals of current times: … al-crisis/

Time to read this again I guess!
Newstalk had part 1 of a two part interview with him around 6.35 this morning on the business show. Lasted 5-10 minutes. Not sure if they’ll put it up.

@Mods, after reading this again, I think you sticky this article for all to read. Not the thread, just the article.

Second part should be on in the morning.

Will Ireland Default? Ask Belgium