Chief Deckchair Arranger on the Titanic?
Housing is in freefall, credit markets are either seizing up or melting down, the economy is rolling over into what looks like the worst recession-cum-depression in decades, and many of the largest financial institutons in the country are desperately scrambling to stay afloat.
Yet, according to Reuters, here's what we get from our leadership in Washington: "Bush Says U.S. Economy in "Rough Patch."
President George W. Bush said on Thursday the U.S. economy was in a "rough patch" but noted that steps have been taken to try to spur growth.
"We're in a rough patch right now," Bush said in answer to a question at a joint news conference with British Prime Minister Gordon Brown.
How does one respond to that?
How does one respond, MP? Isn't it obvious?
One helps the Fed, the banks & the broker/dealers by playing along with the great collusionary miracle of 2008: Repeat the phrase, "The bottom is in," and buy equities on margin until every short has covered. Brilliant!!!
Who cares about such trivial things like the health of the economy, decelerating earnings, or a credit crisis, when the Fed singlehandedly backstops any worthless asset you need to deposit?
Posted by: J. Bridges | April 17, 2008 at 09:19 PM
watching the debate last night on ABC I thought this is supposed to be the greatest country on earth and with all the problems we have this what they come up with???? its horrifying, its like a bad dream; don't kid yourself politics is part of economics as a mater of fact IT IS ECONOMICS!!
Posted by: roger pasa | April 17, 2008 at 11:26 PM
Given the history we have with this president, perhaps it is better for us to be rudderless during this calamity.
Posted by: Jes | April 18, 2008 at 11:44 AM
Given the history we have with this president, perhaps it is better for us to be rudderless during this calamity.
Posted by: Jes | April 18, 2008 at 11:44 AM
I do have to add one note: SOME credit markets are freezing up.
Markets for SIV's, CDO's and other WTF's may be bad, but...
I just financed a new car at 0% for 36 months (old car was 13 years old with a dying clutch).
I can get a 30-year 100% LTV mortgage from my credit union for 6.62% APR.
I can get a home equity line for 6.5%.
And YES, my credit union has a very stable balance sheet and never did sub-prime.
The big banks may having troubles, but the average American that hasn't already tapped themselves dry can easily get lots of credit.
Posted by: Kevin Gunn | April 18, 2008 at 02:08 PM
Yeah, but will they all be able to repay it??
Posted by: | April 18, 2008 at 03:26 PM
Things are turning sour here in Britain, but last month my credit card company offered me 0% for 6 months. So for the first time in my life I an building up credit card debt. Very odd.
Posted by: dearieme | April 18, 2008 at 05:05 PM