There is nothing wrong with more efficiency in the loan process, and making capital available to more people.
The current crisis is not about that - it's about a failure in risk assessment, in all parts of the system. This failure was made by the Clinton administration, the 2xBush administrations, and most companies. It was interesting to watch atp.dk when they introduced new risk assessment systems and a risk diversification strategy based on underlying fundamentals, some years ago. To me, it made a lot of sense, and I wondered why they made a big fuzz out of it. Now I understand: Few others did the same... and that's why we have that mess today.
I don't agree on the failure of the CPI system. It was broken before, it is broken now, but I think it is better now than before. Also, M? measurements of money are not very useful when people are not making the money available. Using CPI and M? inside a crisis like this is like measuring the consequences of a hurricane using a satellite photo.
If you want to blame somebody for this, blame the deficits. Deficits remove the freedom of choice.
Of the two current candidates, it seems clear to me, that Obama will try to repair the deficits, while McCain will worsen it. |
