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Politics : Politics of Energy
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To: Hawkmoon who wrote (5767)3/7/2009 6:20:09 AM
From: Road Walker  Read Replies (1) of 86350
 
I agree with most of your points. A few are in process (mark to market for instance). But you are wrong when you say they can be done tomorrow.... this stuff takes time and you have to do it right or you can create more problems than you solve.

The underlying problem is the descent of asset prices. Without that, the banks would be just fine. But as long as the 'collateral' is decreasing in value, it's a rational decision NOT to lend money backed by collateral assets.

So how do you get assets to stabilize? Demand has to increase to meet supply. You don't get there when the economy is peeling off 600K+ jobs a month. That is decreasing demand and that's what is putting us in the death spiral.

It's mostly if not all about jobs. But thanks for the thoughtful note (that wasn't full of the partisan animus you usually get on this thread).
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