Financial Markets

Obama's actions have already laid the foundation for a gigantic bubble and a further weakening of economic fundamentals.

If anything, all the rescue packages and all the massive pumping by the Fed has made things much worse as far as the underlying economic bottom line is concerned.

Meanwhile, such a system of "extended liability" for homeowners would have prevented the extra stress on banks caused by negative-equity defaulters. Because these people would know they are paying back the full sum either way, they would instead keep the house and pay back the (albeit, exorbitant when considering the plummeting value of their home) debt over time — perhaps while keeping their home, if they had proof of income.

"The 'paradox of thrift' is actually an essential liquidation process that characterizes economic corrections."

John Maynard Keynes often employed flowery language like “animal spirits” and “liquidity trap” to describe things he did no

The bonds will be backed by the usual way that the government gets money, which is to tax it or inflate it away.

But no area of commercial property will be spared the bloodbath.

What a warped view of how the market economy works, to think that savings and foreign investment can cripple an economy.

Incessant creation of fiat money by government central banks will serve to engender more speculative booms to lure investors into financial ruin.

Since the heart of credit is real savings, it is obvious that no government schemes, such as cleansing banks' balance sheets, can increase fully backed credit.