Economists – Why They Should Be Banned

During the 1997 financial crisis in Asia, initiated by people trying to make money on a currency float, 70% of the financial institutions in Thailand went out of business within a week. The economy recovered and the rest of the financial institutions got stronger.

What we have now is a banking crisis but instead of letting the weak fall and the strong survive and get stronger the government is propping them up. Worse the people saying that this is what should happen are the same ones who did not predict the problems. These economic experts are closely tied to financial institutions and we should have them stay mute for a year and let things reestablish themselves naturally.

For a start people don’t want you to understand the financial/banking crisis because if you did you would be demanding that the unstable ones face the consequences. The crisis itself was started by mismanagement by those same people. All those fund managers and advisers that got it wrong should be out and replaced by those few who managed to get it right.

Yes blame the regulators, especially for not doing anything now, but the major responsibility should lie with the money managers themselves. If blame is properly assigned this becomes an easy process, out with the bad, in with the new. Banks and financial institutions can fail, and used to fail, without harming the economy as the example in Thailand, and others, even in the US, have shown in the past.

The current banking crisis is not as bad as it is made out to be. If we keep pumping money into it then it will be. Those asking for the money are the same ones who caused it, sponsored by so called economists who have personal interests in those organizations.

The current opposition leader in Australia is a banker, How can he be expected to do the right thing in the current financial crisis which is a banking one. If it was a currency crisis, e.g. in Argentina, then things would be a lot worse. Given that not all financial crises are created equal then why push ourselves towards a possible currency crisis by propping up banks?

The solution? Easy, shut down any insolvent financial institutions, sell their assets and repay the depositors in full. This will protect the overall sector and save deposits, loans and allow lending to continue.

The problem? The old boys club that is finance and economics in Australia will prevent this simple solution from being implemented.