Libertad

Low Rates, Big Problems

The leverage providers have blown out their accounts....thus leaving it up to the government to grab the baton and keep running....

So the question becomes should they....thus providing the means for the credit providers to build up their accounts for another day in the sun....

Or should prices be allowed to reflect the sudden withdrawal of credit.

Progress in the past 20 years plus relied heavily on increasing credit which in turn made higher prices possible.....

No one said that risk was not present.....Risk means that prices change and thus markets exist....

The governemnt should stay out of markets and in fact become a much smaller part of the total marketplace...

Structural changes such as a 10% consumption tax only....and a new world wide exchange that is more available to individuals not just the gamers of the system such as a Goldman Sachs....would put additional tools in the tool box that could augment prices in a real marketplace way....

The government needs to be drastically reduced commensurate with the recent drastic reduction in the economy.....