Thursday, February 3, 2011

Bait and Switch, Part XXXIV

Bankers' wailing to "stop hittin' on me!" at Davos is accompanied by their finger-pointing at the ostensibly fiscally irresponsible behavior of governments facing rising sovereign debt-to-GDP ratios.

Simon Johnson, former head economist of the IMF, makes a good and obvious point, one that you'd think more people would pick up on:

Government deficits wouldn't be so high if,  oh, they didn't have to bail out banks.
Nevermind that the recession only happend becaused of the banks -- and recession means lower tax revenue.  Which means budget deficits.

One wonders if these people had mothers.  Who would spank them when they tried to wiggle out of trouble by laying blame on their siblings.

Probably not.  Probably raised by disaffected, foreign, illegally-employed nannies.