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.
"'I beg you, father, send Lazarus to my family, for I have five brothers. Let him warn them, so that they will not also come to this place of torment.’ Abraham replied, ‘They have Moses and the Prophets; let them listen to them.’ No, father Abraham,’ the rich man said, ‘but if someone from the dead appears to them, they will repent.’ And Abraham said, ‘If they do not listen to Moses and the Prophets, they will not change and repent, even if someone were to rise from the dead.’” Luke 16:27-31