Saturday, May 7, 2011

Hayek Was Right and Keynes Was Wrong

Another creative video shows the concepts of Friedrich Hayek being debated against the dangerous theories of John Maynard Keynes.  This video is the sequel to the first educational and entertaining creation of John Papola and Russ Roberts.

Fannie Mae is another example of a Keynesian experiment gone wrong, at the taxpayers expense.  Not surprising that Fannie Mae is seeking even more taxpayer funds:

Mortgage finance giant Fannie Mae (FNMA.OB) on Friday said it would ask for an additional $8.5 billion from taxpayers as it continues to suffer losses on loans made prior to 2009.

The largest U.S. residential mortgage funds provider reported a net loss attributable to common shareholders of $8.7 billion, or $1.52 per diluted share, in the first quarter.

Including the latest request, the firm has taken about $100 billion from the U.S. government since it was seized in 2008, though it has also paid about $12.4 billion to taxpayers in interest.

3 comments:

Anonymous said...

The best part is Hayek's verse at 4:54:

http://www.youtube.com/watch?v=GTQnarzmTOc#t=4m54s

""The economy is not a car, there is no engine to stall, there is no expert to fix it, there is no 'IT' at all. The economy is 'US', we don't need a mechanic, put away the wrenches, the economy is ORGANIC."

This was in response to the very weak Keynes analogy of the engine/mechanic and economy/economist:

"It's just like an engine that stalled and gone dark, to bring it to life we need a quick spark."

http://www.youtube.com/watch?v=GTQnarzmTOc#t=4m43s

Gene Hoyas said...

Thank you for your gracious compliment on the Mark Levin article at RightDirection.com. Kindly contact me at the following e-mail address: gene@rightdirection.com.

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