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[Tyrone Slothrop]

Originally Posted by sebastian_dangerfield

Those people already have less money. Nobody save the wealthy is living like they have the money their portfolios, or their bloated home values, suggest. Everybody knows it's a lie - that it's all propped values. That's the essential weakness of the Fed's efforts. All they've done is create speculation at the margins because nobody thinks the current monetary fix will work. Nobody thinks another Stimulus will work. Everybody with a brain is simply trying to maximize returns and park as much as they can in safe havens in fear of the next imminent slump (wall of worry, etc.). All I'm advocating is a recognition of the truth that assets are really worth 75% of their current value. The sooner we recognize that, out loud, the sooner investors will say, "This is the bottom," and start investing in things that will help to bring back sustained economic growth.

It's hard to blame you for this blinkered confusing the state of the financial markets with the state of the economy, since we have an entire business press and political discourse that has completely forgotten that there is any sort of citizen other than the investor.

When people say that there is a problem with demand, they are saying that there is a problem with the economy that is entirely different from the whole paradigm that you're stuck in -- a problem that cannot be solved by figuring out how to get people off the sidelines and back to investing. The problem right now is not with a lack of investment. All of this supply-side crap that tries to spur investment is not going to help right now. I'm not saying it will never help. I'm saying it's not where we are right now.