In normal times, the word I'd use is frustrated. But that doesn't fit my feelings right now. Concerned is closer to the mark, but even that doesn't quite capture it.
For some time now we've been witnessing some extraordinary market activity. We've seen the demise of Lehman Bros. and Bear Stearns. We watched AIG brought back from the brink. Billions of dollars have been poured into the banking sector. Freddy and Fannie have been resurrected. General Motors has now become Government Motors. Bond market manipulation is now in full swing. These are just some of the amazing low-lights we've watched and are continuing to watch unfold.
Where does it end? Why should I believe this will all end happily? The administration would very much like us to believe it.
I'll pass on the kool-aid, thank-you very much.
This pass week, our Treasury Secretary visited China, in part to assure them that their assets were safe. The press provided a limited amount of details regarding this trip, but it's not press releases I'd be interested in reading. I'd like to know what was really discussed behind closed doors.
China's interest in our debt is one of the major geopolitical underpinnings holding our economy together right now.
I also noted with some interest Bernanke's words to congress Wednesday. I won't get into details here (here's a link for specifics), http://www.foxnews.com/politics/200...-congress-start-work-curbing-budget-deficits/ but I will say that it was very telling IMO that he spoke with candor in realistic terms, in essence telling congress that what happens to our future economic landscape is in their hands, not the Fed.
You have to know that Ben was briefed by the Treasury Secretary on what really transpired in China this week. Just read between the lines. Ben said we are still very much in trouble if our economic manipulation and past spending habits don't change soon.
The global economic landscape is not just about the U.S. Every country has a stake in it. This is a geopolitical reality. At some point self preservation kicks in. If China believed it was losing control of its internal structure, they would not give a hoot what happens to us if they took action to remedy it. That could mean selling off their U.S. bond assets if they thought it was necessary.
I don't know how all this will play out. We've probably got quite a ways to go yet and geopolitically speaking, it goes way beyond just China. I for one do not believe we are closer to the end of this drama than the beginning. There are many other smarter people than I who feel the same way.
For some time now we've been witnessing some extraordinary market activity. We've seen the demise of Lehman Bros. and Bear Stearns. We watched AIG brought back from the brink. Billions of dollars have been poured into the banking sector. Freddy and Fannie have been resurrected. General Motors has now become Government Motors. Bond market manipulation is now in full swing. These are just some of the amazing low-lights we've watched and are continuing to watch unfold.
Where does it end? Why should I believe this will all end happily? The administration would very much like us to believe it.
I'll pass on the kool-aid, thank-you very much.
This pass week, our Treasury Secretary visited China, in part to assure them that their assets were safe. The press provided a limited amount of details regarding this trip, but it's not press releases I'd be interested in reading. I'd like to know what was really discussed behind closed doors.
China's interest in our debt is one of the major geopolitical underpinnings holding our economy together right now.
I also noted with some interest Bernanke's words to congress Wednesday. I won't get into details here (here's a link for specifics), http://www.foxnews.com/politics/200...-congress-start-work-curbing-budget-deficits/ but I will say that it was very telling IMO that he spoke with candor in realistic terms, in essence telling congress that what happens to our future economic landscape is in their hands, not the Fed.
You have to know that Ben was briefed by the Treasury Secretary on what really transpired in China this week. Just read between the lines. Ben said we are still very much in trouble if our economic manipulation and past spending habits don't change soon.
The global economic landscape is not just about the U.S. Every country has a stake in it. This is a geopolitical reality. At some point self preservation kicks in. If China believed it was losing control of its internal structure, they would not give a hoot what happens to us if they took action to remedy it. That could mean selling off their U.S. bond assets if they thought it was necessary.
I don't know how all this will play out. We've probably got quite a ways to go yet and geopolitically speaking, it goes way beyond just China. I for one do not believe we are closer to the end of this drama than the beginning. There are many other smarter people than I who feel the same way.
