"In the past few years, we've seen too much greed and too little fear; too much spending and not enough saving; too much borrowing and not enough worrying...An abundance of greed and an absence of fear on Wall Street led some to make purchases - not based on the real value of assets, but on the faith that there would be another who would pay more for those assets. At the same time, the government turned a blind eye to these practices and their potential consequences for the economy as a whole. This is how a bubble is born. And in these moments, greed begets greed. The bubble grows. Eventually, however, this process stops - and reverses. Prices fall. People sell. Instead of an expectation of new buyers, there is an expectation of new sellers. Greed gives way to fear. And this fear begets fear, and that is the paradox at the heart of the financial crisis...What we need today is more optimism and more confidence...There are a very large number of things that are on sale today."
This statement has led me to believe THIS is President Obama's economic adviser.
"Surely too early to gauge the broader economic impact of the president's program, it is. Hmmmmmm?"
2 comments:
Later the same guy said “It is surely too early to gauge the broader economic impact of the President’s program,” he said. “But it is modestly encouraging that since it began to take shape, consumer spending in the U.S., which was collapsing during the holiday season, appears, according to a number of indicators, to have stabilized.”
As far as I know when a market begins to stabalize it is best to let is do so rather than pump billions of dollars into it and risk destabalizing it again.
But we do need to have a good crisis going on now don't we?
Mmmmm...yes...he he he.
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