Thursday, May 7, 2009
The Great Stabilization Con Job
Fed officials, the Treasury, the White House, foreign central banks, economists, Wall Street analysts, and corporate CEO's have all supported the notion that the economy is "stabilizing." And, as you would suspect, the mainstream media has bought the “stabilization” theme hook, line, and sinker. Google the word "stabilization" and the search results will generate thousands of articles written by journalists in the last few days that push the "stabilization" theme. You will hear the word “stabilization” thousands of times on CNBC today and in the coming weeks. Be skeptical. The “stabilization” crowd also thought the housing debacle was “contained” to sub-prime mortgages.