Sigmund

Bernanke and Obama's Spending Schemes Could Ruin U.S. Economy

I rather like Kelm's comments. We are now some 70 plus years forward of the 'great depression'. By looking back at that occurence for guidance, we are looking at the wrong clock! In the present we see that we have made loan to parties who could not service the loan. We have created bond structure that in actuality do not mitigate the potential for default but concentrate and increase the probability of default. We have writtem contracts that offerred insurance and in order to avoid the necessity of establishing reserves, we have called the contracts CDS and sold them over the counter creating a shield of extreme opacity. A three year depression is precisely what we need to begin to set the ship right.