Comments on: All I Need to Know About the Economy, I Learned from Ikea. http://themoderatevoice.com/22924/all-i-need-to-know-about-the-economy-i-learned-from-ikea/ An Internet hub for moderates, centrists, and independents, with domestic and international news, analysis, original reporting, and popular features from the left, center, and right Sun, 22 Nov 2009 22:32:44 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: donthelibertariandemocrat http://themoderatevoice.com/22924/all-i-need-to-know-about-the-economy-i-learned-from-ikea/comment-page-1/#comment-154173 donthelibertariandemocrat Wed, 24 Sep 2008 22:17:13 +0000 http://themoderatevoice.com/at-tmv/newsweek-blogitics/22924/all-i-need-to-know-about-the-economy-i-learned-from-ikea/#comment-154173 I'm not really for a bailout, but this plan has two advantages. First, it worked. Second, I understand it. I'm really a free market person, but, if the government does act, I like to at least understand the plan. You might also look at the William Gross column in the Washington Post. I've always respected him, but don't quite get why he's so sanguine. I'm not really for a bailout, but this plan has two advantages. First, it worked. Second, I understand it. I'm really a free market person, but, if the government does act, I like to at least understand the plan. You might also look at the William Gross column in the Washington Post. I've always respected him, but don't quite get why he's so sanguine.

]]> By: jwest http://themoderatevoice.com/22924/all-i-need-to-know-about-the-economy-i-learned-from-ikea/comment-page-1/#comment-154167 jwest Wed, 24 Sep 2008 22:04:43 +0000 http://themoderatevoice.com/at-tmv/newsweek-blogitics/22924/all-i-need-to-know-about-the-economy-i-learned-from-ikea/#comment-154167 Having spent a good deal of time in Sweden in the early and mid-90s (mainly around Malmo and Lund), I remember the banking and real estate problems a bit differently.<br><br>From what my Swedish friends were saying, the government had adjusted loans in order to allow more of the immigrants flooding the social services network to purchase homes in an effort to reduce the need for more public housing projects.<br><br>Credit loosened, subsidies were provided, home prices rose as inventory decreased, new building was hampered due to regulatory problems and everything was fine until the defaults started. <br><br>My point is that I believe this was more an exercise in social engineering than a result of capitalistic deregulation. Just as the Russians don’t take a dump without a plan, Swedes don’t change the rules without it supposedly being for the social good.<br><br>Much as with liberal policies in the U.S., well-intentioned schemes tend to backfire and make everyone poorer. Having spent a good deal of time in Sweden in the early and mid-90s (mainly around Malmo and Lund), I remember the banking and real estate problems a bit differently.

From what my Swedish friends were saying, the government had adjusted loans in order to allow more of the immigrants flooding the social services network to purchase homes in an effort to reduce the need for more public housing projects.

Credit loosened, subsidies were provided, home prices rose as inventory decreased, new building was hampered due to regulatory problems and everything was fine until the defaults started.

My point is that I believe this was more an exercise in social engineering than a result of capitalistic deregulation. Just as the Russians don’t take a dump without a plan, Swedes don’t change the rules without it supposedly being for the social good.

Much as with liberal policies in the U.S., well-intentioned schemes tend to backfire and make everyone poorer.

]]> By: DLS http://themoderatevoice.com/22924/all-i-need-to-know-about-the-economy-i-learned-from-ikea/comment-page-1/#comment-154162 DLS Wed, 24 Sep 2008 21:47:51 +0000 http://themoderatevoice.com/at-tmv/newsweek-blogitics/22924/all-i-need-to-know-about-the-economy-i-learned-from-ikea/#comment-154162 Note that boom-bust mentality is in no way the same as the phenomenon of deregulation. Deregulation may be argued to affect the _amplitude_ of the swing each way (lack of inhibitions, exploitation and abuse of liberty by cheaters and crooks). Note that boom-bust mentality is in no way the same as the phenomenon of deregulation. Deregulation may be argued to affect the _amplitude_ of the swing each way (lack of inhibitions, exploitation and abuse of liberty by cheaters and crooks).

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