seems that the panic markets again, this time because there is not one good news in the country, Citi appears to the slaughterhouse, the automobile industry is drowning in its own stupidity , and finally, we're screwed and the federal government is in the hands of fellows precarious with an expiration date.
do not need excuses. Everything goes off. All God is so confident that the economy is headed toward the mother of all recessions that all they do is give money to the government , although the interest rate they give these days is literally 0.02% . We're back as we were early October, only 250,000 million dollars poorer "rescuing" banks ".
Actually, I'm not too sure that panic Current is entirely rational these days. I have a suspicion (and this makes a lot of wishful thinking ) that markets are terrified of the power vacuum the U.S. has between administrations. Nobody knows anything, nobody dares to do anything, and no one trusts anything that makes a federal government that change color in two months. The long transition is creating a lot of American uncertainty, and it seems obvious that markets are not taking the attack cagarrinas well.
That side of the financial market. In the real economy, "the U.S. is laying off half a million workers week. The recession will be a horse. No Zimbabwe and several quadrillion percent inflation (without exaggeration: prices double every 22 hours ), but durum.
most pathetic of all this story is that if the regulation of U.S. financial markets were not the epic disaster that has proved, would have a plain little recession, not a potential catastrophe. The rest of the world is to do a stellar job of regulating banks everywhere (ask for Iceland), but hell CDS, rare instruments and shocking indifference to the uselessness of the rating agencies are the fault of a single country.
And yes, I'm in bad milk.
Update: Paul Krugman also speaks of the pernicious effects of the lengthy transition between administrations, and its parallels with 1932-33. While true, it seems that the credit market is less evil it seems , the Paulson plan seems to have done something right.
0 comments:
Post a Comment