"We should have learned that markets are NOT self-correcting. They require collective action to put them back into working order." as published. I sent my blogs about market imperfections with externalities at www.Blogger.com in the past.
"Treasury is moving quickly to tap the $700 billion rescue fund to provide additional risk-capital to banks that need it, in exchange for preferred stock that will give taxpayers an ownership interest and a handsome quarterly dividend whenever there are profits to distribute. UK has announced such a program. Such is the policy recommended by economists, who believe it is just the thing to get banks lending again. Markets are broken for the moment and Paulson cannot be relied on to allocate capital more wisely than Hank Paulson. A bit of timed and crafted socialism is just the thing to save capitalism from itself." Such is the conclusion of the article by Steven Pearlstein, the economics columnist. My comment with citation: China has proclaimed: Socialism with Chinese characteristics. Perhaps we can say such as "Socialism with American characteristics" as known in USA and the world with the understanding of socio-economics in the 21st century.
On page D3: "We may be in several crashes - stocks, credit,housing, you name it. The key is that everything doesn't necessarily crash at the same time or at the same rate. The crisis was caused by the largest leveraged asset bubble and credit bubble in the history of humanity," writes Nouriel Roubini,professor of economics at NYU. "where excessive leveraging and bubbles were not limited to housing in the US but also to housing in other nations and excessive borrowing by financial institutions and segments of the corporate sector and of the public sector in many economies." The following may be considered as behavior with a bit of humor: -
Well,bubbles and bubbles are analogy of human behavior to play bubbles. To me,lifestyle of kids and adults could be related to philosophy or the way of life. Adam Smith or Confucius/Mencius have passed on their moral philosophy of ethics to succeeding generations. Should we be alerted to philosophy of life? What is the objective of our living in this world? Money? Status? Intellectual pursuit? Spiritual satisfaction? Good Health? Please determine your own priority. My blog rests here for you to ponder and reflect the true meaning of life. Please read below for an interesting judgment: -
C. Fred Bergsten, director of the Peterson Institute for International Economics said: "If you look around the world, China is doing pretty good right now, and the USA isn't. You may see a push back from globalization in the financial markets." Published by the Washington Post on October 10, 2008 on page A10 for your reference.
Here is a comment from an authority of international economics including Sino-American Economics. I admire Bergsten's insightful observation.
Francis Shieh a.k.a. Xie Shihao, a lifelong student to learn the views of other economists. October 11, 2008 at 10.26 a.m.