Hugh commented on the blog post Live Chat – William K. Black: The Foreclosure Settlement
You have often referred to a criminogenic environment, but this is an incomplete analysis. The problem is not rampant crime in the economic system. It is the system as criminal enterprise, that is kleptocracy.
There is a major difference in these two views. According to you and liberal economists in general, the economic/political system is essentially sound. So you advocate putting “pressure” on Obama and the Democrats to “force” them to take measures and adopt policies to curb and punish criminal acts. But of course this never happens. And the reason it doesn’t is because your analysis is wrong. If you look at things from a kleptocratic perspective, it is axiomatic why reform will never work or even be tried, why the guilty will remain not only free and uninvestigated but made both richer and more powerful.
My question to you is how much longer will be before you and liberal economists take the plunge and address kleptocracy as it is and not in the tentative way you have done so far and most economists have avoided altogether? And if you do not, at what point do you and they become part of the problem?