One Sigma Short Of A Black Swan
I have it somewhere in my gut that there is somebody, some place who is important thinks they've got another solution instead of really letting the @rse-end fall out like it ought to. It could be someone as smart as George Dubya who says, "whadda-ya-mean its not that easy?? we took rates to 1% in '01 to beat the terrorists...there's plenty of room left and you can cut a bit at each meeting at least until me and my administration is out of office!".
GThat is my greatest fear. But remember that that is precisely what the Japanese did when faced with a similar situation in the 90's. It didn't work and placed their economy in the doldrums for over a decade, asset prices dribbled lower over the entire period. (and still isn't over)***cue "The Vapours - Turning Japanese" :-)
One of the problems as I see it is that the current US administration are not economists and don't appear to be interested in that aspect of governing...after what I just saw with rates I think it's back to the old political game of, "not on my shift!".
Well I wonder to what extent this is influenced by the Washington D.C. orangutans. Allegedly none, but do we really believe that?The other problem is that the economists that do hang out with politicians are of the smirking perma-bull variety, like that fucking Art Laffer imbecile and other "supply side" bozos. (necessary to retain a job on "The Hill")But they have all the ordinance, the question is "when" it all blows up in their faces.
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