The world is descending into intellectual chaos. Read El Erian in the following linked article, and then come and back tell me we have not moved into madness:
There is clearly a tooth missing in one of the gears in El-Erian’s brain. How do you make this statement …
[A recession] is certainly not becoming a reality. You need either a major policy mistake or a massive market accident to push us into recession. But we will slowdown unless we build on the pro-growth policies.
… and then make the arguments he does against the Fed’s policies? Stunning in its apparent sightedness and blindness at the same time. The major policy mistake that El-Erian says we need is fully underway and is even mentioned by him, yet he doesn’t see it. That policy error is the Fed’s original recovery plan followed by the Fed’s Great Recovery Rewind plan. You cannot drain the water out of the reservoir you just filled and not have the reservoir go down. It was clearly an unsustainable plan in the first place!
Read the rest here: The Great Recession