Bernancke v Roach Cause of Meltdown and Future Issues
This entry was posted on 8/26/2009 8:57 AM and is filed under uncategorized.
What Roach doesn't get is that the "surplus" savers in Asia are there because of Asian countries regulatory environment encourages it and isn't about to change. Like all economists he just assumes that the legal infrastructure is the same everywhere and that every system looks at law the same way. It isn't and they don't. When the rules change, so does the game.
Yes in the same way that the US's regulatory environment is partially to blame for the melt down, Asian surplus savings is also partially to blame. They are all pieces of the same puzzle that have to be solved if we are going to return to sustainable economic growth. Roach does no favors by dismissing it. We also cannot absolve Bernancke for the regulatory failures that happened on his watch.
