Truly an interesting read on some very controversial topics regarding the collapse of the housing market by David Stockman (seen here: http://finance.fortune.cnn.com/2013/04/04/david-stockmans-dystopia/). How do you feel about his views that banks are “wards of the state”? Should banks be required to give out x% of their reserves to small businesses/businesses worth less than $10 mil (for example) to stimulate growth? After all, the banks are borrowing at virtually 0% but that is not the rate that the average American gets.
Here’s a few more perspectives on his book, and if you fast-forward to about 3:15 in this video (seen here: http://www.youtube.com/watch?v=utq4g-vkY4k), you see that our buddy Paul Krugman thinks of Stockman’s work. What do you think? Should we dismiss Stockman’s analysis because of the lack of a model?