Reading the general negative sentiment, FWIW I still think
the Administration is handling the crisis well, given
the size of inherited problems. The actions have become
a lot more coherent and significantly less criminal than the actions of the
previous Administration. The government spending and printing
responses are pretty standard under the circumstances,
while those who think we can solve this mess overnight are
likely wrong. Fear that the Chinese will
sell is justified, and devaluation of the dollar is
unlikely to be too drastic. I sense the dollar devaluation is
the policy of the new Administration, as they want to
bring the real economy back from abroad. It seems unlikely that if
these policies are pursued, the dollar will fall to zero.
Hopefully, sustainable growth of the real economy
will emerge from these smart policies, while the size
of the financial economy will shrink. Falling markets are,
perhaps, part of these policies, as we should care more about
producing real stuff than financial (paper) gains, which will
come later with real profits. The PPT should just let the
markets be. -g-
The key to the lack of "real action", as some note, perhaps,
lies in the lack of real solution for the derivative Ponzi
scheme problem sans nationalization. |
