In other words, SOMEONE has to think about our children, and,
actually, running a LONG-TERM stable economy, instead of
short-term tulip mania patches, even if it causes pain today.
This has become totally unacceptable, since the accumulated
structural imbalances are too great for the re-balancing act to cause an
ordinary recession. A collapse of derivatives at this point
will bring severe depression NOW, exactly why the Fed bailed
out Bear. Their conclusion? Tulip mania must be perpetuated at
any cost and backstopped by the Fed and the government.
That will somehow cure the situation. Ah, the logic...
John Law tried that in the past. -g-
What type of crisis shall we have, eventually? One that brings
down the Fed and the government, and, by extension, the
currency. Joe 6P American does not have a portfolio of
derivatives, has no savings, is upside down on his mortgage.
The moment of truth has arrived, and the Fed simply can't
push more debt into the system, derivatives or not. They try -
and commodities rock, causing more pain. Why do they
rock? Cause the new debt at low rates cannot be pushed
to J6P, so the financial sphere speculates on commodities
instead. |
