Tuesday, July 26, 2011

Self-Correcting

All through this there's been a strong belief by elites that the economy would just correct itself, that we'd eventually just work our way through the business cycle, that a stimulus "insurance policy" would be enough to take the edge off until the free market fairies recovered from their bender and got back to work.

But we know it doesn't always work that way. We've known it for a long time.