"It might work for a while. But the falcon of asset prices becomes deaf to the falconer of the real economy. Then, in a kind of financial never-never land, he gets lost completely and flies into a tree. Asset prices fall to the ground. Investors panic. Lenders call their loans. Art investors rush to auction off their tableaux. Lines form at ATMs."
The continuing reaction of the liberal elite to the repudiation of the Democratic establishment by their traditional constituencies of the young and working people is a wonder to behold. They thrash back and forth between a denial of their failure, and disgust at everyone else they can blame for it. It could not possibly be because of anything they might have done or failed to do. And so they are caught in a credibility trap.
It has been interesting to watch market participants swing from “Trump The Terrible” to “Trump The Great” in relation to the markets and economy and he isn’t even in office yet. But while Trump certainly has an extensive list of actions for his first 100-days, there are many headwinds to actual policy implementation and ultimately their success.
Does the average unemployed youth in Greece, Italy, or Spain give a rat’s ass about a Marshall plan for Africa? Hell no! They want a Marshall Plan for Greece, for Italy, and Spain. Sarkozy’s Marshall Plan for Africa idea shows how much out of touch these politically correct buffoons are.
U.S. Senator Barbara Boxer (D-CA) will introduce legislation when the Senate comes into session later today that would eliminate the Electoral College and determine the winner of presidential elections by the outcome of the popular vote.
"Everything about recent experience," Paul Krugman says, "suggests that the world desperately needs fiscal expansion to boost demand and... that our sole reliance on central banks isn’t working."However, the "recent experience" Krugman refers to doesn’t actually back his case.
"...it’s clear that almost everyone on the center-left, myself included, was clueless about what actually works in persuading voters. Tuesday’s fallout will last for decades, maybe generations." It will not matter. Whatever the problem, government is not the solution.