> ... he doesn't support the idea that the bankers are motivated by selfishness. ...
Isn't that assumption always taken by default when considering nearly all market actions? That actors in the market are primarily motivated by selfish goals?
> Isn't that assumption always taken by default when considering nearly all market actions?
Yes, and bankers are generally motivated by self-interest when undertaking market actions. However, we are not talking about a market action. The question is what motivates Ben Bernanke's decisions as the head of the Fed?
Is he a selfish kleptocrat trying to enrich himself and his buddies, or is he providing prudent guidance to the country and economy as a whole? Personally, I disapprove of his role and distrust the Fed's entirely, so I cannot provide a reasonable answer here.
> The question is what motivates Ben Bernanke's decisions as the head of the Fed?
He is still Ben Bernanke, right? Does the hat he wears change him? Assumption that people undertaking government position will forget about what their life was all about up to that point seems far fetched.
Unless that assumption would lay the blame for a catastrophe on wealthy people and require changes that would make them less wealthy, in which case we cannot take selfishness for granted and have to assume their motivations are altruistic (if misguided). You really need to be up-to-date on modern market ideology.
Modern market ideology does tend to assume people controlling the government and various agencies (for instance, Bernake) are motivated by selfishness.
It also assumes that the home-borrowers, politicians, realtors and bankers who created the housing bubble were motivated by selfishness, as were the hedge fund managers and bankers who helped pop the bubble.
I don't think that this is a conspiracy theory. Just observation (fairly obvious, although I am not sure if right in that case) that selfishness can sometimes lead to actions that harm economy and the people.
Comments
> ... he doesn't support the idea that the bankers are motivated by selfishness. ...
Isn't that assumption always taken by default when considering nearly all market actions? That actors in the market are primarily motivated by selfish goals?
> Isn't that assumption always taken by default when considering nearly all market actions?
Yes, and bankers are generally motivated by self-interest when undertaking market actions. However, we are not talking about a market action. The question is what motivates Ben Bernanke's decisions as the head of the Fed?
Is he a selfish kleptocrat trying to enrich himself and his buddies, or is he providing prudent guidance to the country and economy as a whole? Personally, I disapprove of his role and distrust the Fed's entirely, so I cannot provide a reasonable answer here.
> The question is what motivates Ben Bernanke's decisions as the head of the Fed?
He is still Ben Bernanke, right? Does the hat he wears change him? Assumption that people undertaking government position will forget about what their life was all about up to that point seems far fetched.
Unless that assumption would lay the blame for a catastrophe on wealthy people and require changes that would make them less wealthy, in which case we cannot take selfishness for granted and have to assume their motivations are altruistic (if misguided). You really need to be up-to-date on modern market ideology.
Modern market ideology does tend to assume people controlling the government and various agencies (for instance, Bernake) are motivated by selfishness.
It also assumes that the home-borrowers, politicians, realtors and bankers who created the housing bubble were motivated by selfishness, as were the hedge fund managers and bankers who helped pop the bubble.
Those market actors also only have limited rationality (and not perfect foresight), and skewed incentives (-> principal agent problems).
That needn't hinder one from constructing a conspiracy theory, though.
I don't think that this is a conspiracy theory. Just observation (fairly obvious, although I am not sure if right in that case) that selfishness can sometimes lead to actions that harm economy and the people.
Greed is (not always) good.
I agree. Though I would be cautious stating that someone wanted a recession _and_ effected [sic] it.