Thursday, October 17, 2013
Via HBL a few days ago came a
recommendation of John Tamny's evisceration of Janet
Yellen, Barack Obama's nominee for chairmanship of the Fed. Harry Binswanger
recommended it for its "excellent" "anti-Keynesian economics". Here's an
Of course the mere mention of 'economic recovery' perhaps does the most to explain why we never experienced a real one under Bernanke, and why we won't enjoy one under Yellen insofar as Yellen's meddling hand resembles Bernanke's. We won't because lost on both is the essential truth that the recession IS the recovery, it is the fix, it is the happy reversal of that which made us ill initially, including excessive consumption of housing. Recession is the market's way of correcting the mistakes, the misallocations of capital, the labor market mismatches, and in a more literal sense, it's the market's way of releasing the human, physical and financial assets of Webvan and theglobe.com to nascent concepts that the markets actually want like Google and Facebook.I was impressed by Tamny's lucid presentation of his case, which any reasonably intelligent lay reader can grasp. Not only are the economics impressive, so too is the psychological insight. The very fact that someone wants this job is indeed a red flag. Now that I've had a chance to read it, I highly recommend it.