Duff McKagan of Guns n’ Roses fame is going to be writing on financial matters at Playboy.com. What makes this more interesting than the simple fact it allowed me to type that last sentence is that Duff has outed himself as a free-marketer. He says:
I do find how money works rather fascinating. Adam Smith, the main person looked at to be the founder of capitalism, was a simple but brilliant economist who had particular ideas on how a free…
Our simplest and best answer to the whole bailout issue, it seems to me, is that creative destruction has to be allowed to take place. But creative destruction is destruction, and hurts a lot of people. When Mrs Thatcher closed down the horrendously inefficient mining and shipbuilding industries in my native North-East of England, huge numbers lost their jobs. In my home town there was 50% adult male unemployment. “Thatcher,” not the names of people who propped up the failing…
…is the title of a useful contribution to the discussion from the International Policy Network in London and the Lion Rock Institute in Hong Kong. Their recommendations for finding a way out of the financial mess are worth attending to:
– Better mechanisms are needed to manage the failure of large financial institutions, some of which may now be both too big to fail and also too big to rescue.
– Open ended guarantees to depositors and other counterparties are expensive and…
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