The markets may have stepped back from the abyss thanks to the unprecedented and enormous promise of federal monetary assistance and an emergency ban on short selling, but it is still looking into it.
The models are broken for our outsized financial sector. It was a Ponzi scheme as it turns out with bad debt piled higher on bad debt thanks in large part to Alan Greenspan who kept the game going long after it would have stopped otherwise.
And now Paulson and Bernanke promise a fresh infusion of new capital to what? Why to keep the game going as it was before?
Will this work? Hell no. It only will buy time for a real lasting solution, a serious fundamental fix, to be crafted and the terrible task of adjusting our economy to begin.
