Moon Kil Woong

Someone Has to Lend in 2009: Ideas to Profit

There are a lot of rotten eggs left coming with the aging of the baby boom generation. Principally all the oversupply of houses they own. There would have been a glut even without the Greenspan mega-bubble.

I agree with you the government has no will to say no. With their demographics being the biggest, that is understandable and I can't rightly say it is wrong. After all, we are in a democracy. If it's people are selfish that will reflect in their demands.

There will be a lot of stimulus going on but I'm not certain it will counter the lack of consumers to borrow. Getting banks to lend is the small hurdle. Making the public feel safe enough to to go on uncontrollable buying binges is the next part.

Then you have to ask yourself, is this really good? Certainly not in the long run. Isn't this hard when so far the government has constantly been adding to the uncertainty by dumping money into the market arbitrarily making people feel that some kind of unfair dole out is going on that may lead to mass inflation even though the Fed's move to zero interest policies destroy savings income and leads to deflation in the short term?

People have a right to be unsettled and looking to gamble on making money off of government spending sprees. But that in itself is the crux of the problem. When asset decision making is no longer based on market forces but is based on political whim run for cover. The certainty of supply and demand becomes replaced with nightmarishly fickle and myopically inefficient pet pork projects (look at the Bush Jr. budgets for a good example of that. There was more pork in them than the previous 30 years combined. No wonder the economy went to hell in a hand-basket).