emily x

Irrational Exuberance Got Buried Yesterday: Now What?

"The Chinese don't have to sell. They just have to stop buying more US debt to show the USA that a debtor is never in the position do dictate terms unilaterally." -- True, but like everything in the vast new global economy, it works at least 2 ways: China also has to be concerned about a backlash against poor quality/dangerous products from her biggest customer -- us.

What's strange is how often we've been here before, with gigantic debt suddenly being called in and nobody actually having the cash. What happened to that "huge amount of liquidity" that's supposedly been "sloshing around the globe" lately, according to the wise folks on CNBC? I guess if history teaches us anything, it's that history doesn't teach us anything!

President Bush Envisions a Soft Landing — What Does He Know?

"It is notable that the president does not see any problems with the lack of fiscal discipline that has roughly doubled US debt during his reign." -- Of course not. Because to him and almost every other republican, it's not a lack of fiscal discipline -- it's a phenomenal growth strategy that has been "working" (with one 8-year exception) ever since Reagan was first inaugurated. All hail.