NVDL: Feels as though the giant wave of the world is starting to break...doesn't it? And where is a better (worse) place to start than by wiping out all the delusional wealth of the stock markets? What better (worse?) place for reality to bite than in the long game of catchup (and wake up) that is underway in suburbias around the world. Suburbia is being finished one houeshold at a time.
I am almost shaking as I write this for what is happening to the capital markets, this country, and the free world. The impact of the past two weeks' action in the financial markets, if not reversed by cooler heads, will have irreparably changed the world in a way that only terrorist attacks and acts of war have in the past.
Nationalizing Fannie Mae and Freddie Mac, providing an emergency quasi-legal bridge loan to AIG, temporarily banning short-selling on all stocks in the US, and instituting an RTC-type entity to handle the toxic waste of the financial system is economic violence on a grand scale.
The long-term cost of these actions to dollar holders will likely be in excess of $1 trillion. |
clipped from globaleconomicanalysis.blogspot.com
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