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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Sea Otter who wrote (85627)	8/28/2007 7:31:48 PM
From: CalculatedRisk	Read Replies (3) \| Respond to of 110194

Does America Need a Recession? Of Course Not... economistsview.typepad.com And more related thoughts from Professor Thoma on the subject: Fed Intervention and Moral Hazard economistsview.typepad.com I like this quote from Wolf: "Burned children fear the fire. If some of the biggest and most powerful institutions in the world have been playing with fire, they need to feel the burns. It is not the central banks’ job to rescue them... It is their job to preserve the banking system and the health of the economy. Neither seems now to be in grave danger."

To: Sea Otter who wrote (85627)	8/29/2007 1:17:58 AM
From: John Vosilla	Read Replies (3) \| Respond to of 110194

'Delaying the correction of past excesses by pumping in more money and encouraging more borrowing is likely to make the eventual correction more painful. The policy dilemma facing the Fed may not be a choice of recession or no recession. It may be a choice between a mild recession now and a nastier one later.' We might really need an early 1990's type recession.. Disciplined consumer on a budget, tighter credit, no rampant speculative excesses, dampen inflationary expectations, reign in Chindia growth and excess investment and use of natural resources.. Perhaps if this is the end game it is the reason gold shares aren't performing well?