Bernanke’s Wakeup Call
There is so much to say at this point in the long secular cycle, but the most important point right now is that the problems in the economy are structural. Probably the most important thing that was done by Washington in the whole 2007 to 2011 period was the rescue of the Detroit car makers.
The Fed initiatives of cheap money created the problem and have kept the problem alive.
We will have a lot to say over the next few weeks about what needs to be done but for the moment a new set point will need to be built and cutting the deficit is not the answer.