Author Archives: Swedish Lex

Guest Post: Geithner’s Faustian bargain, the general interest, Jean-Jacques Rousseau and Uncle Sam’s lost inner compass

Submitted by Swedish Lex, who helped unwind Sweden’s imploded banks in the 1990s: The U.S. Secretary of the Treasury appears to be close to proposing a Faustian bargain that, seemingly, will involve considerable Government subsidies towards a limited number of economic operators. In return for the sacrifice – the creation of massive moral hazard – […]