Monday, April 06, 2009

It's always darkest before it goes pitch black

This point won't have any links to first order documentation to support my claims. But unlike the journalists I rag on, I ain't paid to do this.

Basically I've been watching the Obama Admin deal with the Great Recession. And in all honesty they are getting about 90% of it right.

The problem is that the GOP left such a mess that in order to get out of the recession and avoid a depression he needs to get it all right.

And the achilles heal will be the financial industry. The reality is that this industry's purpose is to facilitate the flow of money through the economy. Whenever the industry has grown to a point were it becomes a defacto gambling industry there has been a major economic meltdown. And those meltdowns have not stopped until the financial industry has been radically regulated and paired down.

I know my friends in finance may not like to hear that. But the facts iz da facts, by which I mean studies. Now to be sure this isn't the only problem. Hence the point that 90% aint good enough.

And most financial businesses aren't the cause here.. it's mostly the big big ones.

But again, things won't get better until the financial industry is fixed.

And I don't think Obama agrees. I've seen a ton of admin officials talk about the real problem being health care. This financial thingy is a bump.

So I predict a real depression and 5 years of it to boot.

*And don't give me that free market crap either; this isn't a free market. We've always had regulations that have fluctuated between reditributing wealth down (post-new deal) or up (post reagan-omics). Right now we are at the height of a Lemon Capitalist period.

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