Monday, October 06, 2008

It is just an illusion

Can we stop our pain and suffering for something we never had and never existed in the first place? Apparently no.

  • On top of the $700B bailout, "the Fed signaled it could increase the amount available through those loans to $900 billion by the end of the year, increasing the amount the Fed will loan through the program by $750 billion above its previous limit". Gee, good thing we really needed Congress to act when the Fed can do whatever it pleases. It makes me feel proud.
  • This article begins to point the finger in the right direction when it puts this problem in terms of psychology, but fails to carry the argument to its last consequences. Why does it have to be a psychological factor? Because there is nothing tangible behind currency, that is why. At the very least, there is certainly not enough to back the economic activity we see today. So, since this does not resist formal analysis, let's pretend and feel good about it at least. Except of course that, as happens with other alkaloids, there is always that crappy feeling after a high. Well, there you have it. Our economic dopamine receptors themselves have become fully resistant to more money. Piling on higher overdoses does not address the issue.
But what do I know, right? Nevertheless, in the end, what one does not manage to understand by comprehension, one is forced to understand by suffering. It seems to me there is a lot of learning being forced down everybody's throat right now. If we only dared to look at things differently...

Meanwhile, here's a bit of a reality check.

1 comment:

Carl Gundel said...

The more this crisis spreads, the more money the federal government will spend. In theory "the American people" will own the assets, but that isn't like to benefit us very much. In addition it looks like states are beginning to ask the feds to bail them out too. Ultimately the federal government will end up owning everything, that that can't be a good thing.