Vox Day delivers a very harsh attack on the modern financial industry and its reliance on government subsidies in the form of Fed inflation and points out how the long run has now arrived. Every time Austrians have attacked monetary inflation and bailouts for their negative long run impact, we are told that we shouldn't think about that when we have a immediate problem in the form of a downturn because of previous inflation and bailouts, and how we shouldn't think about long term effects because in the long run we will all be dead as Keynes put it. But what that misses is that the downturn only exist because of how we previously ignored the long term effects, and that trying to ignore it again only means we will again experience this kind of crisis in the future. Keynes is dead now, but we are living in his long run now.
Ann Wollner writes about how about how the obscene salaries and bonuses of some of the Wall Street executives should be taken back. What she misses, apart from also making Alan Greenspan and other Fed officials accountable, is the fact I mentioned in the previous post how the bailouts prevents this from happening. Had the banks gone bankrupt, it would have been possible under current bankruptcy law to take back at least the bonuses of executives, but now that they are bailed out that will be very difficult.
Caroline Baum presents a pessimistic, but not entirely unrealistic, vision of the future where the Democrats and most Republicans collaborate in greatly increasing government control of the economy (With the risk of being considered nitpicky, I would like to point out that government spending is currently a lot higher than 17.5%, even if you only look at federal spending). This illustrates the point I have been trying to make for some time now, about how the official right if it continues to reject Austrian economics and sound money, will pave the way for more socialism and regulation.