Everybody Calm Down. A Government Hand In the Economy Is as Old as the Republic.

Markets cannot exist without trust.  Unfortunately, the financial markets that are in trouble were structured in ways that created irresistible temptations for abuse and promoted the creation of systemic risks that now threaten the US and Global economies.        

To Shiller's advices, one may add the following which are particularly relevant for Mexico and other emerging economies: convince better, avoid a "state of denial", learn the lesson from others and act now.

With all due respect to the author, Washington is not the appropriate President to site as the authority that foresaw the current financial and economic issues we are facing today. Nor would many other Presidents be good examples. Not, Kennedy, nor Carter, nor Regan or even Clinton. In point of fact, each of these Presidents had no idea of where our financial system was moving, nor the implications...