Newsflash, Sebastian Mallaby: The Economic Village Is Burning

What is it with market worshipping pundits?  Sebastian Mallaby in 2007:

Rather than seeing hedge funds as sources of dangerous financial fires, in fact, it is more accurate to see them as the financial system’s benevolent fire fighters — and to let them have the tools they need to do their jobs well.

Hedge funds as "benevolent fire fighters?"  Yay!  The totally super awesome unregulated hedge funds saved the economic day! 

Hmmmm…not so much.  But never fear!  Sebastian, again, worships at the Keynesian altar today:

The bailout is often seen as a commando operation, in which you take out the bad-loan enemy and imprison him in a government vault. But it is also a hearts-and-minds operation, in which you persuade wary financiers whose territory you have invaded to trust you and work with you.

The key question is whether Treasury purchases of bad loans will encourage hedge funds and other investors to dive in themselves.

Holy head up yer ass…Stop trying to boost your book sales and be honest with yourself and your readers, for hell’s sakes.

Here’s a reality check: jobless claims are up, groceries cost more, health care expenditures are insane, senior citizens are panicked about their retirement savings and increasing costs of everything with their diminishing fixed income pool, food banks are swamped, and we’re about to enter heating bill and heating oil tank fill-up hell. 

UPDATE:  Oh, frabtacular joy.  eCAHN says George Bush will address us at 9:35 ET. 

(Video from The Daily Show to make up for inflicting Mallaby on you this early. H/T CalculatedRisk.)

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2. Village Surprised by Support for Public Option
3. It Takes The Village To Raze the Economy: Some Notes On Krugman and the Return of Keynes
4. Sesame Street: Tackling Tough Economic Times Together
5. Late Night Saturday: Village of Our Damned