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mark sommer he goes by devil's tower on daily coast notaries wrote a really
interesting diary there called how republicans killed
hapless of cinta and now i want to bring one talk about that marcotullio trucks
that would be here
uh... mark moves let's go go to the heart of your premise how dad republican
still jobless
whether recovery capitalism there
we buy into the primer nowadays that
free trade is somehow an intrinsic american value we forget that
here in washington very first term the government was involved in selectively
restricting imports paying up subsidies bailing out the best
creating private companies being the major stockholder of bank going in debt
to become the major stockholder back
they carry out i think it was planted infrastructure projects
and all that paid for by the attack
but nowadays we seem to have that to develop an allergy to all of that we
we've worked into the state what we believe that
shore free traders and unalloyed good
and even democrat seemed buy into that
well places that they think
at the day actually believe that or or visit that their is clearly a corporate
overlords are saying audio push for that does that allows them now free reign to
make money in the short term
and then who cares if they cry for companies that own on their cup
brochure
it is definitely a a
heavy-duty short term thinking
and that's what we've done it kind of break the business cycle
practical pragmatic countries have always known that
there you go up and they come down and if you give people a little freedom to
do some investment
they will get creative
and they'll discover new ways to make money but gotta get too far
so the government have to step in at some point and play referee
i thought that the government controls these markets but they have to keep the
market for getting out of control
and what we've
darlin since the nineteen eighty two
each time the market has gotten out of control our response is not been too
tighten up and impose new regulations but the deregulate birth
you can look back to the nineteen eighties with the deregulation of the
savings and loan to meet you can look
to uh... that the deregulation of banks
they can play for a week we keep giving them more slack and for the reel in the
mood
and as a result of swings in the business cycle of gotten ever more
extreme
well marked their opponents would argue that none of the problems the gunman was
at anything from the get go
okay and maybe a figure are going to see all the way back to watch me we were
doing the wrong
and that it would just completely yet have a way of business
then everything will work
yeah if you could have been attractive argument at this trip never worked for
anyone
it uh... kind of like communism you know it basically system that would probably
work for a jewel
that everyone was perfect and always by the by the rules ideal pure capitalism
like pure communism would work well
human beings are involved in that conflict but he got up to play a referee
i mean represent probably appointee because he can't have a game without
laughs i mean you know
at and if you've seen paprika ball here it better and in l_a_ you'll know that
are perfect but but
now back to you and other boy the made in your diary which was that may be
japan's lost decade wasn't such a bad thing has a very unique argument why do
you say that bar where i get if not that unique to me uh... i'm out
doing a lot of that from our economists richard crew
who's looked up along in hard at what japan went through we keep it
in the last decade locked decade like it's the bogeyman right we don't want to
go there
but the truth is there in japan's lost decade their unemployment never rose to
about about what happened ours is at the moment
and at the train car they were able to add additional benefits to retirees and
by the way not one japanese for the findlaw for complete government paid
health care
so how loft of the decade in in which
no one is really doctrine that much and they didn't calder
serafin the kind of bail them out by spending over their heads in fact people
were able to tighten up save more money and the evidence with the economy was
turned around
because japan still understands that relationship you can you can
half the companies
get out of hand a bit
have the government
steppin and the government shoulder the burden
for
some period of years while the
the companies get their books back in order while they get all the red ink off
the book to get the book back in good shape
and it's time for the company says to start the next five eleven and the
government
obligation is to to not only kind of holed up
the business while they get their act back together but
but regulations in place so that they won't repeat what just happened all
market as it is and i and i had seen it when i find it very interesting 'cause i
didn't know that their maximum on abundantly they had not quotable lost
decade was only five point five percent
so tight as everybody saw employed in this will have health insurance
but the company's aren't making tremendous profits of the reason they're
not as because they had
over inflated profits over plated assets before so make sense that you they had
to deflate
that may be some such a bad thing but but but others would argue mark that
well then you're
income didn't grow very much and economy didn't grow very much and that's gotta
be a bad thing well you do it
it appeared on her measuring
how your economy is doing
if your measurement over your economy is strictly the gross domestic product
ten-year japan was flat for nearly a decade
so we want to know that they worry of what we would consider recession they
were going down
but they have we're growing either however
they didn t go down
gross domestic product for japan never fell below where it was on the day when
the government prepped and and by the way intentionally
the bubble before i could get more out of hand
and the the
in the meantime you know the people who are were not losing their jobs and and
the ever can comfortably and was not dropping
but a lot of ways they
not only
are doing better during the last decade and we're doing now they get better for
the average worker in the last decade than we did
in the previous decade which would propose to be boom times for a and in
right now we have his situation and and with what we've done in reaction so we
didn't quote unquote avalos like that
where the bankers are back to making record profits
and we have attempted set up what grade and we don't even have health insurance
for all americans
i mean detail than she is a small part of it of course it's very important but
it's just to give that people context so either obviously you think that there is
gone and they completely wrong direction they leave
uh... he's real playing the bubble
well like i think that it's our obligation not just a good idea but the
obligation to step in at this point and tour regulate the kind of creative
financial instrument that was
created over the last decade
it wouldn't hurt one bit back all the regulation that was removed with flat
eagle
you which is a very good job of protecting us from exactly this kind of
up at that inflation
exp
before we removed it
porcelain a guy who will remove it and it's not a bomber stop economic adviser
larry summers
so that doesn't bode well that will quick before our time mark we're trying
to mark summer heat rights is devil's tower on daily coz and he wrote the
piece how republicans killed capitalism
what what do you think about
of the latest efforts by chris dodd
of and uh... financial regulation reform these put together in the senate
are you know i think you're a great reformers surface
at least that we should have a single regulatory bodies certainly one of the
problems of the lapd cycle
work a lot of fingerpointing
but you know each organization was willing to point out another one as
being really responsible so
if we can have one plates were where the
bank book
there and perhaps we have a better chance of regulating them
but of course it may just the easier in that case for the banks to too
control what's going on if there's a single regulator
yeah its
it but this is the best of of all options we have already you see some in
the house of might be better
you know it's probably the bear bring on the table right now
certainly there have been people of the proposed
bringing back collecting poland and making from really strict about regulate
regulatory changes but
of articles for your bill
at the moment
have the kind of momentum or the attention at least the dot proposals out
on marks on the prices devil's tower on daily coz thank you so much for joining
us live really proves it
watched gel
at the unfortunate come