triplepoint

Chinese Tiger Raises Default Concerns

Would reduced faith in derivatives be such a bad thing? Basically its gambling. Would reduced faith in large bets at Nevada casinos be so harmful? In the case of China, there is the added issue of whether it is the state that is defaulting or merely a company (which happens to be owned by the state) defaulting.

U.S. Government Move Will Push Russia and China Toward Economic Matrimony

What's the big deal?

The USA imports too much, exports too little, and saves too little.

Through the normal course of things, this is being corrected. Only by the dollar falling and savings rate increase can the balance be shifted. Now it is happinging, and China et. al. seem no longer committed a low dollar. On the whole, the change is best for everyone.

The U.S. Government: Frozen in the Headlights

In response to a previous comment, I would say that all government spending, projected future spending, credit guarantees, etc. is clearly stimulus. They increase the level of economic activity and/or available money. Companies make decisions based on future projections, so projected future spending is also a stimulus. Similarly, if people really believe that government spending will cut back in the tuture to balance the budget, that is anti-stimulus.

In a time of general economic slack (such as the present), any wise spending of money by the government is good in the short term and in the long term. Unfortunately, there is no mechanism to know if spending is wise, either for government or business.

All I know is that Al Gore didn't invent the internet. It was invented by the DoD, AT&T, IBM, and a number of other "small" organizations. A chaotic mix of things of all sizes and types produces innovation.