Past Cred

Credibility is everything amid a crisis.  Yet at the helm of the Fed, the Treasury, and Congress (those policy makers now co-opting $ trillions from the private sector while throwing the free market to the wolves of socialism )  you have a crew that has been for the most part entirely blindsided by this crisis.  Not only did they dismiss as irrelevant those who warned that massive economic collapse was on the horizon, they encouraged even more excess while mocking those who prudently sounded the warnings.

Now these very same “experts” are being granted unprecedented amounts of power and wealth to solve the very crisis their theories and policy framework — economic, political, or otherwise — not only failed to predict, but also grossly underestimated from the first signs that dominoes were beginning to fall.   Blinded with the illusion of knowledge, the theoretical framework in which they continue to operate not only failed to grant them any foresight about what was looming, it continues to drag them — and the world’s economies — into the abyss of  a failed paradigm, never mind how discredited those espousing such poor theories truly are given their horrendus track record vs. those who prudently predicted this fiasco.

This blogger asks that you merely consider the track record of your sources when judging the validity of their proposed or acted upon policies.  Should you really trust those who failed to foresee and properly diagnose the current crisis to get you out of the same crisis?  Especially if their prescriptions for solution are nothing more than gargantuan heaps of the same policy mistakes that got us into the mess?

Of course, the honest reader will at this point question how the novice is to judge quality policy from crrraaaap.  The best I can say is give a look at one’s past ability to properly diagnose reality and the future, and then lend them the ear and respect they deserve.

For your review, quotes of mine from this decade:

“Following the famed market crash of 1929, investors created a real estate bubble as investors repositioned from a failing stock market.  This bubble burst in late 1932 into 1933  and was part of the massive wealth destruction we reflect on as the Great Depression.   The question in our near future with real estate may well be, who gets stuck with a stale egg when the music stops?” September 2002

“While Americans used to be very careful with their capital, such prudence has given way to an ever-increasing nonchalance about the negative consequences of massive systematic malinvestment burdens that our businesses and consumers are forced to endure simply to engage in ordinary market commerce.” — November 2002

More to come.