A lot of folks on this thread and other related threads
just want all proper reforms to be enacted immediately. This
is a process in the society, and politicians are a product
of democratic society.
The politicians just want a scapegoat for the jobs problem,
and WS is becoming one. However, folks who speculated on
houses with 0 down are as much to blame, the whole culture of
living large and in debt has to change, as it is doing.
So, yes, I think the tilt toward Volcker rule is real,
and yes, I do think necessary reforms to curtail bubble
activity will eventually be implemented by both political
parties.
It will not be immediate, and no, I don't think they will
hyperinflate. We'll have a decade of pain no matter what,
pain of screwup-Keynesian nature - higher inflation, higher
unemployment, lower dollar, bankruptcies, including tough
love for the government sector and eventually
higher interest rates. It will go on until the system
is healthy. Ordinary folks most likely don't understand
what caused the melt.
As for the tilt toward Volcker rule, it is real,
there will be some restrictions on banks speculating
with depositor's money. We'll see how many.
I expect the government to continue tightening their "regulating"
practices. Some steps will be wrong -g- |
