EUROLAND TRADERS WERE SINGING FROM THE 1990'S SONG BOOK YESTERDAY...
STOCKS IN EUROPE SOARED ON THE FED RATE CUT...ALA THE DIPPY, BUY THE DIP, 1990'S... BUT HEY, THESE EUROLANDERS STILL THINK JERRY LEWIS IS "FUNNY!"
TODAY, IT'S BACK IN THE SOUP...
ASIAN GAINS WILL BE SHORT LIVED...AND WERE PROBABLY MORE TECHNICAL THAN AN EPIPHANY THAT THE US HAS BROKEN OUT OF IT'S STRUCTURAL FUNK...
IN TRUTH THE STRUCTURAL PROBLEMS OF THE US ECONOMY VIS-A-VIS THE WORLD ARE WORSE NOW THAN EVER...
BUT STRUCTURAL PROBLEMS NEED STRUCTURAL (IE TRADE POLICY) SOLUTIONS...
NOT ONE TIME GIMMICKS AND BIZZARE STUNTS...LIKE BERNANKE'S SHOCKER YESTERDAY....
WASHINGTON AND WALL STREET ARE SIMPLY NOT READY FOR REALITY YET...
THAT WILL REQUIRE A NEW ADMINISTRATION AND A NEW CONGRESS...AND THAT WON'T HAPPEN UNTIL 2009.
BASICALLY 2008 WILL BE A YEAR OF DRIFT AND CONFUSION IN THE GLOBAL MARKETS...
WITH NOTHING DONE TIL 2009... BUT EVEN IN 2009 THE VIEW COULD BE BAD...BECAUSE WHAT NEEDS TO BE DONE IS A TOTAL RE-WRITE OF THE GLOBAL ECONOMIC DIALOGUE AND THAT WILL BE PAINFUL AS A "NEW REALITY" AND A NEW PARADIGM ALWAYS IS...
