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Yes but if the consequence of how the crisis is tackled is to make the original cause of the crisis even worse, what is the basis for the eventual recovery he seems to expect?  He doesn't seem to share the "anglo-disease" analysis that the root cause of the crisis is 30 years of ever greater transfer of resources and power from the poor to the super-rich.

If the chosen solution to the fire is to pour oil onto it, surely we can expect an ever greater conflagration?

How can "consumer sentiment" recover if consumers are even more impoverished by inflation and a net transfer of resources to Oil producers?

How can the US recover if the escalating costs of Iraq are compounded by increased oil prices.

I don't see the basis for recovery in his analysis...

"It's a mystery to me - the game commences, For the usual fee - plus expenses, Confidential information - it's in my diary..."

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Tue Jul 15th, 2008 at 06:23:05 PM EST
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The current administration in Washington sees their job as protecting and building the assets of the rich. The very fact that the rich are rich is justification for their protection.  Like saving the King at all costs. Perhaps many in Congress have bought into the frame that this is a heroic rescue of society for the benefit of all. Most think they are doing their job as well as they can.  The rest of society is just a PR problem.  

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue Jul 15th, 2008 at 09:18:37 PM EST
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I think he sees a drop in commodity prices as a global slowdown to be ineluctable. He has a few articles on Bretton Woods II, the system of pegged rates to the dollar from russia, GCC countries and Asia, and as that system fails the recession for those economies is likely to be huge too.

But I agree that he does not acknowledge that the recession from Japan had pretty much the same origins and was a real catastrophy. He does acknowledge it however in what he thinks the correct solutions are: no bail outs.

Rien n'est gratuit en ce bas monde. Tout s'expie, le bien comme le mal, se paie tot ou tard. Le bien c'est beaucoup plus cher, forcement. Celine

by UnEstranAvecVueSurMer (holopherne ahem gmail) on Wed Jul 16th, 2008 at 05:28:33 AM EST
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