2008-04-22 — marketwatch.com
"Bad Money" (mainly Wall Street and its buddies in real estate and insurance) has been building for over two decades. In one brief generation our total debt quintupled to $50 trillion. Manufacturing was cut in half, from 25% to 12%, while "Bad Money" doubled, from 10% to 20%, in our GDP. Now "Bad Money" is the world's "real, real economy," setting up a new and bigger disaster.
Phillips quotes Roach: The Fed has "mismanaged the biggest risk of our times ... America's bubbles have gotten bigger, as have the segments of the real economy that have been infected." Higher interest rates are "the only hope America has for breaking the lethal chain of endless bubbles." But "endless?" Maybe not, as long as Washington and Wall Street remain obsessed with "growth" as America's main economic goal.
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