noteworthy wrote:
Mike the Usurper wrote:

What it looks like they are trying to do is let the pressure bleed off so that things that work continue to work, new things that need to be done get moving, and old things that are failed die a slow death rather than all of them dropping dead simultaneously.

The thing is, almost nothing works. Most banks are insolvent. Letting them die a slow death is repeating Japan. The American auto manufacturers are fundamentally broken. Propping them up for the next several years may weaken the importers to the point where they aren't viable, either.

Who wants a slow death? Why?

Because a slow death is better than the alternative. 1990's Japan was a godawful mess. 1930's America was worse. 1920's Germany was worse. 1980's Argentina was worse. A better target for rebuilding/restructuring this may be the Swedish bank moves or the Danish housing moves, both of which were painful, but largely successful.

The one thing I will say with absolute certainty is, we need to change course. Standing around with our thumb up our collective asses will get us exactly where we don't want to be, and will likely spell the end of this nation as we know it. It is that bad.

RE: Calculated Risk: Volcker Speech: Economy May Suffer for a `Long Time’