Nerds Warning : The commentary that follows, written by the clear-eyed observer John P. Hussman, may be a bit technical for some of our readers. But the material presented is critical to addressing the structural problems underlying our financial system.
The reprieve of recent quarters may create a misleading impression that there is no urgency to the issues faced by the U.S. economy, but as noted below, the likelihood of fresh mortgage losses and credit difficulties is high. Few reforms have been enacted that would make a second wave of difficulties any different from the first. The following would provide the U.S. with broader policy options. To the extent that these points are consistent with your own views, feel free to forward it to others, including representatives in the House and Senate . It remains important to get this right sooner rather than later. The social cost of misallocating trillions of dollars is difficult to overstate. – JPH
Disclosure: no positions mentioned