Mike Larson's latest Money & Markets article tells us plainly that government options for continuing to stimlate the economy & keep it going are hitting the proverbial brick wall. There is no more room to maneuver, and the economy has still failed to get restarted by their previous efforts.
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What nobody in D.C. will tell you … but I will … is that a big economic slowdown is already baked in. There is nothing the Fed can do … nothing Congress can do … nothing the Obama administration can do … to prevent it.
The massive, reckless credit bubble that built up over the past couple of decades needs to be unwound. If you prefer the jargon term, it’s “deleveraging” — and it’s something we’re just going to have to get used to. (Mike Larson, Fed Policymakers Screw It Up Again, 8/13/2010)
The massive, reckless credit bubble that built up over the past couple of decades needs to be unwound. If you prefer the jargon term, it’s “deleveraging” — and it’s something we’re just going to have to get used to. (Mike Larson, Fed Policymakers Screw It Up Again, 8/13/2010)
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Fortunately, there are real and reasonable steps that can be taken to protect portfolio value even in the face of another severe economic and market downturn. Even though timingthe markets perfectly is highly unlikely, it looks more and more like the reality of lousy economic data is poised to take its toll.
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