Tuesday, March 18, 2008


This guy makes a lot of sense. WAY more sense than those in business clamoring for government intervention and bailout. I have seen a large number of articles, where executives in the mortgage and related industries are urging some form of government intervention. Appalling.
Like their counterparts in Japan in the 1990s, American authorities may be deluding themselves into believing they can forestall the endgame of post-bubble adjustments. Government aid is being aimed, mistakenly, at maintaining unsustainably high rates of personal consumption. Yet that's precisely what got the United States into this mess in the first place — pushing down the savings rate, fostering a huge trade deficit and stretching consumers to take on an untenable amount of debt.

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