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  • Credit Crisis Watch: Are the Markets Thawing? [View article]
    LOL

    I enjoyed reading that.

    I agree with your point that solving a credit bubble with more credit, either to institutions or individuals who mismanaged the debt the first time, is throwing gas on the fire.

    They may turn around "sentiment" and get banks to lend more but with the fed spending taxpyer dollars on the institutions that leveraged themselves into crisis; how can that end well?

    The institutions and individuals will simply engage in more debt leveraging and spending until the party really ends.

    Better to sink the tug boat in the harbor than the Battleship in the Pacific.


    On Nov 28 11:19 AM axelrod608 wrote:

    > I regain faith in Americans when I read comments like the above.
    > There are clearer heads out in investorland than in DC.
    >
    > The thesis of the article is based on a faulty assumption - that
    > the credit markets of 2006 were "normal". Nothing could be further
    > from the truth. After a decade of a flood of cheap, easy, unlimited
    > credit by Alan "Bubbles" Greenspin, the nation's financial markets
    > were awash in excessive credit exuberance. And the assumption that
    > returning credit markets to that bloated condition will somehow "fix"
    > the economy is ludicrous.
    >
    > The credit markets and the bloated financial corporations we brought
    > into the 21st century were and still are unsustainable. The bubble
    > can no more be reinflated than can the Hindenburg. And there's Hank
    > and Ben pouring gas onto the fire.
    >
    > Change ? Hope ? Based on the choices other than Volker that the next
    > Pres has made, I see a future of seamless policy to keep shoveling
    > dollars by the cubic yard into the inferno. I am skeptical of these
    > functionaries' grasp of the underlying problem
    >
    > The rules need to change. The dinosaurs need to be allowed to die.
    > And if federal money is to be thrown around, let it go to small and
    > mid-size businesses with hands on owners, reasonably compensatesd
    > officers and employees, not to the goons that once called themselves
    > "masters of the universe" who, it turns out, can't run a company
    > anywhere but into the ground.
    >
    > The unfixable cannot be fixed. The 2006 credit market was Humpty
    > Dumpty. He fell.
    Nov 28 16:49 pm |Rating: 0 0 |Link to Comment
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