chart chat, page-72

otaku. G'day. Your comments are precient and excellent.The SEC did put a few away,and I agree made a mess too.However I do not believe that it was a major player in the cause of this US Mess.

The availability of credit was freed up far too much.

I also believe that the US mess has implications from a long time back. Mr Clinton changed the Law regarding eligibility for mortgages if my memory serves me correctly and Mr Greenspan(I do not believe he realised the havoc derivatives could cause as deep in my memory I believe that he once said how wonderful they were)and he kept interest rates low for too long.The size of derivatives and the Leverge was vey high de leveraging looks as if it is still going on

To move on:
It might be a good idea to refer Mr Rudd and Mr Obama to
Lord John Maynard Keynes who explaing years ago how to get an economy out of the mess such as now. Infrastructure is what money should be spent on not hand outs which are 'economically'wasted as they enable the public to spend on Japanese/Chinese or Foreign manufactured goods and do not provide work here for Australians,and then leave the bill to be picked up by future generations.

No IMHO it is much better to build infrastructure with defecit spending so that the future generations get some benefit . Cuts to tax on all persons particularly the lower paid are a good idea as that gives an incentive to produce and a Major fall in interst rates from these current high levels would be excellent,both allowing the economy to grow , free of charge so to speak.

Australia and USA with their large handouts seem to be spending plenty of money the incorrect way as far as I can see.

Australia has interest rates which are Far too high and these were raised last when they should not have been raised in my opinion.
The RBA should be brought back under the full and speedy control of Parliament.
High interet rates can lead to an overvalued currency AU$ is also far too high.

Low interet rates and Low taxation enables an economy to grow( it is called productivity)without costs and prolifigate defecit spending.

Mr Volker, who is financially careful, should be running the whole of the financial side of the USA as he Proved himself years ago when he jacked up US interest rates to say 20% and gave inflation the boot.

The US economy has a great advantage as it has the chance of New Technology which may well spawn new industries so there is hope.I am feeling very bulish as in this period of darkness we can look forward to the dawn.Best wishes to you otaku.b2