Andrew Hughes

The Economic Policies of Failure

Nicely argued Nicholas. The fact that an overinflated economy cannot tolerate a liquidity / credit reduction explains exactly where we are now. The only resolution I can see is not repeating the same process over again. But, as we have seen from the TARP, injecting liquidity in to an already overleveraged system cannot cover the basics nor repair the damage caused. The way forward involves returning to a more sustainable model where balance sheets reflect Real value and where the Financial sector is brought to heel. Unhinged speculation by the latter must be cleansed from the system.

Preview from Europe: Huge Job Losses Spark Market Rally

Good and timely reference to Ireland, I already wrote ( meltdown101.livejourna... ) about Mr Cowen and his belief in Loaves and fishes forever and for everybody. Someone should buy him a calculator for Christmas .
With regard to Mr Obama's Economic stimulus plan, I am inclined to defer to Peter Schiff's analysis that the last thing the U.S. needs is more debt. Also, it seems to me , from observing the markets over the last few months, that as soon as they see greenbacks from Henry, Fiat or not, they whoop it up and ignore what's happening outside the window in the real world.

Wall Street Breakfast: Must-Know News

With Consumer spending in freefall, credit card debt spiralling upwards along with unemployment, who is GM going to sell cars to even if they survive long enough to retool and reorganise ? If they get their bailout and eliminate all unnecessary costs, reduce workers wages, pensions etc. and make it , still standing, to end of 2009, the last thing on consumers' minds will be an overexpensive hybrid like a Torus lookalike.