Monday, March 2, 2009

It has long been held (principally by the the Chicago School of Economics, Milton Friedman, et seq. and the objectivist devotees of Ayn Rand) that laissez-faire capitalism always works. That unbridled capitalism is self correcting. That the only act required by central banks (the Fed) is managing the interest rate so as to control inflation. Here's another rock on the cairn of that now well deprecated notion.

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