Read more about the article Trickle down really does seem to work . . .

Trickle down really does seem to work . . .

The Fed confirmed the contraction in the U.S. economy yesterday when it released the preliminary GDP results for Q3. Coupled with the most significant drop in consumer spending since 1980, the troubling signs in everyone’s gut have finally reached the statisticians.

I continue to believe that we’re spinning through  a self-fulfilling prophecy, filling our minds with paper tiger headlines that lead to retrenchment. [Geoff Colvin, a Fortune columnist expands on this concept and includes other “vicious cycles” we need to watch.] (more…)

Continue ReadingTrickle down really does seem to work . . .
Read more about the article Why am I not surprised?

Why am I not surprised?

I’ve been saying for weeks, in various conversations, that one reason  the “crisis in confidence” has transformed fear into anxiety, is the Fed’s feckless attempts to “cure the economy”. The initial bailout plan stalled as cooler heads insisted on accountability and a clear plan of action, but the tide of uncertainty washed it ashore in some vague $750 billion bailout.

The stated intention was to buy toxic mortgage securities to relieve the liquidity crisis. Many of us were dubious in the ensuing days and weeks because the markets did not react favorably to the bailout. In addition to the history of failed government programs, my skepticism was fueled by the shortsighted decision to let Lehman fall, the fact that AIG burned through its $85 billion in a few weeks and needed $40 billion more and the surprise, at least to many, of the overnight fall of Washington Mutual.

(more…)

Continue ReadingWhy am I not surprised?