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October 17, 2008



"If you look in the rear-view mirror all the time, you crash."

This sounds funny coming from such a staunch traditionalist and amateur historian. Isn't there a saying about history repeating itself under this and that stipulation, or some such nonsense? Doesn't tradition and history inform us better than reason on many occasions?

I'm just being cute here. I do agree with you.

Nathan Smith

Hehe, touche... But the funny thing here is that tradition is, if anything, in contrast with deliberate learning from history. A traditional response to this crisis would probably be some combination of interest rate cuts and loans to troubled companies. Fed and Treasury are sort of tearing up the rule book in a desperate attempt to avoid a new Great Depression. They are stepping considerably outside the orbit of institutional habits and standard practices.

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