[lbo-talk] Krugman weighs in, echoes Yves Smith

Michael Pollak mpollak at panix.com
Mon Sep 22 22:53:00 PDT 2008


On Mon, 22 Sep 2008, Dmytri Kleiner wrote:


> Do you agree that the current financial crisis can be traced back to the
> "winning" of the cold war?

No. The US wasn't bankrupt at the end of the cold war, and a decade later it was in fiscally better condition than it had been in 60 years and better than any other rich country in the world.

I think you might be confusing bankruptcy, a fiscal term, with a large net debtor world trade position. But so far that's got nothing to do with the present crisis (although it could play a big role later).

Michael



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