growser7

Did Bernanke Save the World?

Brian McMorris and all who might agree that the world has been saved---this isn't over yet. At best, it is merely a postponement of a more harsh day of reckoning. Our dubious "salvation" has been accomplished only by the expansion of public debt, which will need to be dealt with, either by inflation or higher taxes. Right now that is a mere abstraction, but it will come to pass, and will bleed wealth, growth, and opportunity out of this land. There is no free lunch. We enjoyed the upswing of a massive sine wave, and we will inevitably face the down swing---postponement is not a resolution. But more to the point, the economic contraction isn't over. A 10-15 year credit bubble isn't going to resolve in 18 months. As a physician I would never say I saved anybody while I am sitll doing CPR.

I would also differ with your comment that people aren't really poorer. The unemployed and the marignally employed are getting twisted into the ground, and their ranks are growing. Give this another one to two years and we might all sadly see how poor our fellow citizens (and ourselves) have become.

--The ides of March have come.
--Aye, Caesar, but not gone.