The road to economic hell is paved with good intentions and bad banks.

via Confusion, Tunneling, And Looting « The Baseline Scenario.

I’ve been reading a lot about the banking crisis. I don’t know how many blog entries I’ve read, but I’m sure it’s welll into the hundreds. Most of what I’ve read has been written by expert economists, financial experts, banking experts, credit experts – and they’re all over the map.

Now the conspiracy theorists are showing up. Are we seeing the effects of a cabal of evil bankers? Or is the Obama administration trying to sink the economy in order to usher in a new age of socialism?

C’mon – get a grip. What most commentators miss is the human aptitude for sheer ineptitude. That’s what happening. We’re seeing the results of widespread ineptitude swirling through the financial industry and government. It happens. It’s happened before. It will happen again.

We’ll eventually dig our way out, but I don’t expect government to lead the way. The various “rescue plans” strike me as equivalent to heart surgery with a hatchet – nothing good will come of it, but maybe it’s better than nothing. At least it’s entertaining.

The problem with conspiracy theories is that they assume the conspirators are really really smart and well organized. The evidence points more to dopey and dumb.


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