The Savings Glut Is Legit

Megan McArdle has a very good defense of the savings glut argument. Just because Alan Greenspan believes something doesn’t mean it’s wrong.
I think the giant amount of Chinese investment that came into U.S. Treasuries massively altered our financial system. Too many folks see this story as an excuse to get Greenspan off the hook. That’s not necessarily the case.
We tend to think of lending someone money is doing them a favor. If you really want to hurt a country, don’t invade them, lend them too much money.

Posted by on May 26th, 2009 at 2:16 pm


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