September 29, 2008

tangible reasons the credit crisis matters

Farmers generally harvest on credit - no credit means they can't pay their employees or run their machines and, the year after record food prices, the harvest is at some non-negligible risk from the financial markets.

Which, by the way, is a time-sensitive issue. Warren Buffet also sounds worried, which always makes me nervous. I've also been thinking about what Obama should have said about how a potential bail-out package would affect spending priorities (**cough**Keynes**cough**) - Lawrence Summers mentions the case for Keynesian stimulus about two-thirds of the way through this article.

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