Dude, Where’s My Recovery?

Happily we see that Anthony Sanders has found a new vehicle for his highly informative column, Confounded Interest, in case you wish to bookmark it.
The failure of the Fed and the regulators and the Solons of government is not terribly complex. What else would one expect if you address the symptoms badly, and do little or nothing to fix the very crux of the problem?
John Kenneth Galbraith said it quite succinctly some years ago. ‘Trickle-down theory – the less than elegant metaphor that if one feeds the horse enough oats, some will pass through to the road for the sparrows.’
It is like sending billions in aid to a corrupt, Third World nation, where little of what is sent actually makes it to the people for whom it is intended.
It is not the stimulus or the principle behind it that is discredited. What we have had is not the kind of stimulus designed to kick start aggregate demand. It has been the sustaining of the status quo, the continuation of a major policy error and widespread financial fraud, resulting in an asset bubble collapse and ongoing financial malaise.

This post was published at Jesses Crossroads Cafe on 06 MARCH 2016.