After the crunch...

Stefan Karlsson is an interesting economics blogger of what some would call the Austrian school (although he less dogmatic than that implies), here he makes an interesting point about the inherent contradictions in the Government's response (both US and UK's) to the credit crunch.

" Bankers Should Be Blamed-Both If the Make Risky Loans And If They Don't
I noted before that leftist analysis of the economy is very contradictory. They first of all claim that the financial crisis simply is the results of banks making too many risky loans-and that we need radical reform to prevent banks from again making risky loans. But at the same time they also attack bankers for abstaining from lending because new loans are perceived as too risky.

Now Obama is at this again. He first says that bankers caused the crisis by making risky loans-and that now they should approve more loans "to help the recovery" (which even if Obama tries to deny it can only mean loans for borrowers more risky than those who now get loans) because they previously caused a crisis by approving loans for risky borrowers......

Try to figure out the logic in that...

I can't see any "logic" except to blame bankers regardless of what they do and absolve government of any guilt regardless of what it do."