Moon Kil Woong

For a Fork in the Road, a Barbell Portfolio

When the government preaches overspending and encourages debt rather than austerity there is something wrong. After 911 Bush Jr. said be patriotic and spend more. That statement underpins why his actions and the actions of his administration are financially so much worse than 911. Prodding banks to lend even more when their biggest problem was loose credit and over-expansion of risk and leverage is clear and continued moral hazard.

Telling banks to go ahead because there is no market to market accounting and even less regulation today than before the crisis is nothing short of insanity. No wonder the markets are collapsing. Trust No One has gone from marginalized conspiracy theorist to just about anyone with money. We are living in a big black accounting box and the government is telling us not to light a match for fear of what we might see.