Saturday, March 21, 2009

I'm frightened

I'm no economist, that's for sure, but it's possible the Obama people are treating our financial problems as stemming from a "liquidity crisis" as opposed to what some experts, including Paul Krugman, deem an "insolvency crisis." The difference, as explained (and predicted as long ago as the fall of 2007) by Nouriel Roubini is critical. It means, in essence, that all the money we're throwing at the banks to make them "liquid"--with money to lend--isn't going to deal with the fundamental issue: they're broke.

A word to the wise...

Three words, actually: Look out below!

Monday, March 16, 2009

Wait and see

Let's hope the US under Obama treats the new leftist government of El Salvador with civility. A good early test of the administration's posture on South and Central America and their moves to the left.