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Strategies & Market Trends : The coming US dollar crisis
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To: Real Man who wrote (17168)2/2/2009 1:05:45 PM
From: NOW2 Recommendations  Read Replies (1) of 71426
 
"So how come the 'potent directors' are once again failing? The reason becomes clear when one thinks things properly through.
The economy and its underlying production structure are what they are. There is nothing the government can possibly add to to the economy in terms or real resources.
By intervening on a grand scale in what appears to be a distinctly ad hoc manner, it merely introduces what is known as 'regime uncertainty'.

The main question investors are faced with these days is not 'is the economy sound' (it isn't) or 'will earnings improve' (some day they will). The main question is 'what will these bozos do next'.
And yet, there is this almost touching, widespread faith that government holds the solution to our problems.

People have to believe in something – the idea that the 'wealth increase' of the bubble years was entirely illusory is still not fully embraced. It is simply unacceptable – everybody, even many former bears, hopes that the downturn, while likely bad, will prove to be just another brief slump after which a return to 'business as usual' will surely follow.
This is to say, everybody secretly prays for the bubble to return.

There are now debates between economists in the pages of the Financial Times over whether the downturn deserves to be called a 'depression' or not.
Note that the person refusing to countenance the thought is Stephen Roach, who for many years has warned of the bubble's excesses. Apparently not even he can imagine that the downturn will be a mirror image of the boom."
acting-man.com
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