Wednesday, October 29, 2008

Same old tricks but enlarging same old problems! The devils are the winners!

A year ago, when somebody asked what could be done to solve the housing and credit crises, I was pretty cynical in my answer: Same old tricks but this time the magnitude would be greater but worse:

  • Crazy interest rate cut
  • Liquidity flooding
  • Asset inflation
  • Competition by currency devaluation
  • Creating unlimited bubbles
  • Unlimited bailouts to the devils and their friends
  • Ensure the lower classes will bear all the losses!


Now more than 12 months has lapsed and the situation has been crystallized:

  • Interest rate will be ZERO soon and negative in effect
  • Unlimited liquidity flowing everywhere but finding nowhere to invest
  • Currency devaluation everywhere at the speed of light
  • Unlimited bailouts to the devils and their friends everyday
  • What we have not yet seen are the natural consequences of the old tricks: Unlimited asset inflation and bubbles - it's just a question of how soon
  • As for the lower classes, they are always bearing the losses anytime anywhere.

God, why have you forsaken us? Why are you doing nothing?

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