Moon Kil Woong

We Simply Do Not Have a Financial System

The government has been inflating. What do you call the Iraq war spending and deficits. And you can't inflate until the market hit's a bottom. Any economist worth his salt will tell you to let the bain increase (unless it's inflation) and then reverse it when it hit's what you hope is a bottom. Shock treatment to get it started again is the best hope.

What we are doing is what Japan did. Falsely prop up the system and refuse to fix anything as the economy collapses. Then falsley prop up banks, socialize industry, and let people artificially price the assets that got them in trouble. For Japan it was real estate. For the US it's real estate and derivatives. So far we have almost 0 reforms on real estate or derivatives. We also are letting banks hide their losses and proping up failed, inefficient institutions like Goldman Sacs which is where the Paulson the head of the Treasury is from. How convenient.

Cut the corruption, kill the bad companies leeching off the economy and now the taxpayers. Regulate to kill the bad derivatives and overleveraged banking games, re-institute Glass Stegal if you have to. Then, and only then, pump a lot o G into the economy.