Sunday, February 3, 2008

Spengler Strikes Again-3

"Two great upheavals took place in the last week. One occurred in American politics, when the voters of South Carolina [SC] crushed the predictions of the political professionals. The other occurred on the world's stock exchanges, where the value of the world economy swung in a 20% range. ... Can it be a coincidence that it occurred in the same week that financial markets showed their wildest gyrations in post-war history? ... Obama's [SC] victory speech was the economic equivalent of a carnival snake-oil pitch. ... People of modest means do not understand the stock market, but they are sly: they can read the panic in the eyes of their leaders. After assuring them for months that all was well, Washington last week offerred an emergency interest rate cut for the first time since September 11, 2001, and an emergency economic package which will send a small check to every American family earning less than a certain threshold. ... America faces not a dip in the business cycle, but the end of a 25-year run of wealth creation. ... No, Obama, you can't. You can't blame America's trading partners for the loss of manufacturing jobs, and at the same time persuade them to replace the misspent capital of the American banking system. You can't persuade the world to fund hundreds of billions of dollars a year of American home mortgages, and protect the employment of a few hundred workers at Maytag. ... [I]t is now conceivable that Obama will sweep the November election and bring a Democratic Congress on his coattails. ... If Reagan offered 'voodoo economics', as his opponents charged, Obama is selling cargo Cult economics", my emphasis, Spengler at, 29 January 2008.

I love this guy. 'Nuff said. Stephen Cecchetti, please read this, "People of modest means ... can read the panic in the eyes of their leaders". Yes, even I can do it.

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