Tim over at The Mess That Greenspan Made writes about why the Fed is immoral and I can hardly improve on it. You should read the whole thing. Once you’re done with that, read about why our crisis will deepen even further instead of getting better over at Cafe Americain. I believed when I first saw Obama that as President that he reminded me of JFK in that he was highly inexperienced and seemed to be running around listening to a lot of supposedly smart people instead of making decisions on his own. This level of inexperience got us into the Vietnam War with JFK and it’s liable to do something similar again with Obama though I would hazard a guess that the war will be one fought on internal grounds in the finance industry and government.
When you lack experience to make hard decisions, you will almost always make the wrong ones. We are seeing this continually with this administration and while I do believe that he is well-spoken and well-meaning, I don’t believe he is capable of the job we have given him. It is likely to only get worse as time goes on. There is little support for the stock price surge we have been seeing since March and the U.S. dollar is under fairly heavy pressure. We are likely to see a a big fall in both starting sometime in September just about the time that the American public decides it is OK to start putting money back into the market. The result will be both obvious and terrible.