So far we are about 2 months into the new Administration,
and I like what Obama is doing, in general. The appointments
could have been better. The crooks policy is, perhaps, quite a
bit less drastic than many would wish, which is
a political step - the government is still full of them.
The economy? He sure
inherited a horrible mess, so he collected the best minds
with different approaches to discuss the economy, then he follows
their recommendations. This seems to be the way to go, given
that all real solutions for the economic mess are difficult at
this point one way or the other.
Derivatives? Rather than the Fed/Hank pressing the PPT button,
I would suggest the bubble developed on its own based on
the government's implicit guarantee (bailouts). The real
solutions for the mess are not yet implemented, they
are just backstopping the systemic crisis.
Well, maybe they are discussed. Hopefully, real reforms will emerge
eventually from these discussions, although it is clear that
letting them blow up is not an option. Reforms in that
area are absolutely crucial to ensure long term health of the
economy. These are quite difficult since the instruments
are complex. It's quite possible that neither the economists
nor even the CEOs of the huge banks (the derivative
monsters) have an idea as to how to deal with those. The
specialized quant groups with Ph.D.s from MIT developed them,
and you need to have one of those to fully get it -g- |
