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Real World Economics

Sweating Our Way to a Genuine Economic Recovery by: BruceMcF Sun Jan 04, 2009 at 06:13:10 PST ( - promoted by buhdydharma ) Burning the Midnight Oil to Drag Economics into the Real World As Jerome a Paris has noted, among others, Paulson and others of his ilk have started blaming the Chinese and Germans for our economic woes: The US Treasury Secretary said that in the years leading up to the crisis, super-abundant savings from fast-growing emerging nations such as China and oil exporters - at a time of low inflation and booming trade and capital flows - put downward pressure on yields and risk spreads everywhere. This, he said, laid the seeds of a global credit bubble that extended far beyond the US sub-prime mortgage market and has now burst with devastating consequences worldwide. What a sorry load of ... well, let me go for a better analogy than that ... and then dig more deeply into the whys and wherefores of its load of ... ... uh, after the fold. There's More... :: (1 Comments, 1908 words in story)