Financial Markets

The government creates "jobs" that are destructive. Because there is no feedback of profit and loss, the only thing that can eventually end a harmful bureaucracy is a massive public outcry.

The best remedy would be for the government to stop interfering and let the market process work.

For hundreds of years, politicians (like a certain current US president) have pushed the idea that one man’s profit is another man’s lo

"An improving economy neither consists of an increasing GDP nor does it cause the overall stock market to rise."

By whatever name you call it, this massive "pump priming" by the US monetary authorities will engender exactly the same results it always has: malinvestment, dollar debasement, and speculative mania.

Bankers can spend their interest payments on real goods and services, thereby returning that money to the public, which can then use it again for further debt payments.

"Under deflation, it is those non–wealth generating activities that end up having the most difficulties in serving their debt, because these activities were never generating any real wealth and were really supported or funded, so to speak, by genuine wealth generators."

Knowing that the Fed now holds the most toxic of the subprime assets the banking system could create during the roaring 2000s should leave us with some concern.

It doesn't make the country richer when politicians spend money they don't have.

"Contrary to Krugman and other commentators, we suggest that the best economic policy for the Fed and the government is to do nothing as soon as possible."