The International Monetary Fund (IMF) is the organization that audits the books of countries world-wide to determine their real financial health. The IMF is also responsible for bailing out countries in trouble, and stabilizing the world's economic systems.
What Iamsaying is that the government's actions to date have not fixed the underlying problems or helped stabilize the economy. The government has been doing all of the wrong things and made the situation worse by, among other things:
(1) Throwing trillions of dollars at the "too big to fails", instead of admitting that many of them are insolvent
(2) Undermining trust of nations all over the world in the American economy
(3) Failing to restore Glass-Steagall, reign in credit default swaps, or do anything else necessary to stabilize the financial system
(4) Attempting to restart high levels of leverage and securitization
(5) Failing to take real measures to decrease employment and increase manufacturing
(6) Creating an enormous debt overhang and trashing our currency
As Stephen Roach - Chairman of Morgan Stanley Asia and former chief Morgan Stanley economist for the U.S. -saida couple of days ago:
Those who are looking for a “V”-shaped recovery are in for “a rude awakening."
“The imbalances going into the crisis were large to begin with. Now, they are bigger than ever.”
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