[lbo-talk] Goolsbee: subprime was pretty groovy (in 2007)

[Patrick Bond]

Shane Taylor wrote:
> But it's the breached limits he was defending. My takeaway from the piece was the credit evaluation in subprime lending is working and the fears are antiquated. It read like a stock piece of tut-tutting about old conceits blinding some to the virtues of bold, new innovations. Of course, he wasn't in a professional minority to say so.

Similarly, in October 2006 Muhammad Yunus won the Nobel Peace Prize on
the same stupid premises: markets work for the poor, but the poor need
access to markets; credit is the great 'human right' that will remove
artificial barriers to participation in capitalism; the poor are more
reliable in their commitment to repayment...

No clue about how uneven/combined development (especially in the real
estate market) is periodically amplified by the financial system, a
process Marx knew so well, but one that cannot even be conceptualised in
mainstream economics.