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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (358759)	2/21/2008 11:43:29 AM
From: stan_hughes	Read Replies (1) \| Respond to of 436258

I know a few non-fans of Keynes who would take great issue with you about the Fed Model, but let's set that aside -- I'm more focused right now on the fact that even if you think the Fed Model valid, a leveraged economy like the US won't be posting much in the way of earnings without the continued support of a healthy banking sector -- you can probably limp along without almost any other sector, but not the banks, they provide the grease -- this is how a credit cancer spreads to other industries, notwithstanding that WS continues to be in denial about it (presumably while the smart money gets out/hedges/goes short/lays it on the government/taxpayer) Traders can keep doing battle amidst the daily ups and downs, but the shrinking capital base is unstoppable -- so something has to give, i.e. either the markets or the buck, or both