August 13, 2007
Is the US economy more about massive consumption on borrowed money than one based on saving, investment and production? Does it matter?

Bruce Petty
Not really. Not for the free market boys who comment on the market. They are talking in terms of central banks' actions as the confidence booster the market needed". "Rationally it wasn't necessary, but because markets fire on confidence rather than rational explanation, you need this as a circuit-breaker.
The self-correcting mechanisms need a confidence boost to get working , and there is nothing wrong with the market that requires any form of form of regulation.
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usa has been living on capital for a long time. someone in asia will tap the 'sell usd button' a little one day, and usd will lose 1/2 it's value, or more. no one wants to start this, everyone wants to 'diversify'.
interesting times in the reserve banks. rather like russian roulette. and you thought bankers led boring lives...