I read this message, and I get all wild-eyed and revolutionary–eh?–that was the 1960s. I mean that study of the material presented leads me to suspect We older Americans will be laboring into our vastly later years, because our Replacements may have died of starvation in the transition to middle age. I particularly do not like the trend which I witness, where requirement of a college degree conflicts with a rising Cost of acquiring advanced education in the street-fighting at the barricade level. This is Why I wonder How we can reach the statistical level of the final graph. I might be having one of those Bolshevik Moments, or I am actually perceiving a lack of formal and on-the-job training for a great mass of our labor force. I am not complaining, but when I am on public welfare and lying in my decrepit hospital bed in some rat-infested Rest Home; I do not want some cretin orderly trying to wheel my bed out of the room while the place starts to burn down, because of failure to properly maintain the Sprinkler system.
John Taylor may be feeling similar to myself, simply in another area. He seems a little tired of economists trying to justify the Stimulus by reliance on economic models, which have always shown disparate results from the reality found. He attempts to show there is real degrees of contention with any proclaimed Consensus, while I simply state that most of the economic models deal with a much smaller economy with far less capital expected to expand, and a far greater capacity to borrow. I do not wish to continue in this vane, else I might censured by the community for being a rabble-rouser.
Here is an article which is supposed to make Us feel better–I think. The Geithner Stress Tests were supposed to identify What the Banks held, and What they didn’t. Then, using their own numbers–never a good idea, Everyone is finding that the whole situation is not so bad. The article claimed this Transparency has provided a calming effect upon All. I am not so sure that Mortgage-holders are calmer, but the people who built this Crisis are back to demanding their exorbitant bonuses. The whole thing will work out, as they always do, though I really doubt that the economy is currently on safer ground; especially with the banks back to extending the same Credit in the traditional method of issuing SWAPs. I cannot see How capital reserves can increase by writing Paper, but I have been so wrong about so many things; I might as well be looking for that Rest Home. lgl