Saturday, March 7, 2009

Economic Crisis - Manufactured (Surprised? i am not)

Excellent explanation of Illiquid assets and current economic crisis BY Karl Denninger. In shorts it is a manufactured problem. Yes thats right. This is a manufactured crisis.

"Illiquid Assets" are not an act of the markets, nor are they an accident. They are in fact created by GOVERNMENT INTERFERENCE in the marketplace.

In 10 minutes you'll "get it" - why the government - not the markets - has led to the credit freeze. Why the market cannot clear. And why it is in fact explicitly the things that the government has done and is doing that has led us to have a "credit crunch", where assets that normally would trade won't.


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