On Sep 27, 2008, at 1:08 AM, Michael Pollak wrote:
> "The premise appears to be that the market is irrationally
> pessimistic," wrote Greg Mankiw, a Harvard University economist and
> another former Bush economic adviser, on his blog this week. "That
> might be so. Nonetheless, one has to be at least a bit skeptical
> about
> the idea that government policymakers gambling with other people's
> money are better at judging the value of complex financial
> instruments
> than are private investors gambling with their own."
"Progressives" endorsing this line of thinking should step back and think if they really agree that markets are wiser than governments, and prices that emerge in a panic are rational.
Doug