Friday, September 19, 2008

Ideology and the Crisis

Dangerous cocktail: the baby boom retires and their retirements go bust.
Right now, the oldest baby boomers are 63. The ratio of earners to dependents has been at an all-time high. A vast earner generation is about to begin its transformation into a dependent generation. Probably a more dependent one than anticipated.
The rest of the FT article, on the ideological implications of the crisis, is very good. ... as is this one, from Fortune, on Paulson:
"I'm quite disappointed," says Peter Wallison, a former Reagan administration Treasury official and an expert on Fannie and Freddie. "He certainly isn't a believer in free markets." Others go further: "America is more communist than China right now," declared maverick investor Jim Rogers. "This is welfare for the rich."
Paulson disputed such charges in two expansive interviews with Fortune, the second on the day after he unveiled the Fannie-Freddie rescue plan. (By then he was sufficiently relaxed that he had his feet up on his antique desk.) "I believe in markets," he says. "I also believe there is a role for government."

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