Krugman: Innovating Our Way to Financial Crisis

[RamboLiberal]

The financial crisis that began late last summer, then took a brief vacation in September and October, is back with a vengeance.

How bad is it? Well, I’ve never seen financial insiders this spooked — not even during the Asian crisis of 1997-98, when economic dominoes seemed to be falling all around the world.

This time, market players seem truly horrified — because they’ve suddenly realized that they don’t understand the complex financial system they created.

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The bottom line is that policy makers left the financial industry free to innovate — and what it did was to innovate itself, and the rest of us, into a big, nasty mess.

http://www.nytimes.com/2007/12/03/opinion/03krugman.html?_r=1&hp&oref=slogin

[AX10]

1. K/R

Strict oversight is needed.

[Double T]

2. 'innovate'?????

I hardly think so!! How about 'game' and 'manipulate' like a bunch of addicted gamblers? Still the DENIAL, FEEBLE EXCUSES and COMPLETE LOSS OF TOUCH WITH REALITY....CONTINUES.

[prairierose]

3. The so-called financial industry calls it innovation....

some of us just call it fraud. But you won't hear that from either the corporate media or the government non-regulators.(Read free market pirates in the temporary employ of the government.)

If you read financial news from other countries where US financial fraud is hurting them, you begin to hear the rumblings of it. After this, I do not believe that US corps will have a very easy time doing business in other countries ,unless their govts too, are controlled by free market pirates.

Of course, that could just be wishful thinking on my part.