Wobble betrays fragile confidence

For a brief moment this week, it looked as if confidence in the two pillars of the US fightback against the crisis – the creditworthiness of the government and the Federal Reserve’s ability to exploit its position as the monetary authority of the world’s reserve currency – was starting to wobble.

A synchronised fall in US bonds, stocks and currency on Thursday was a reminder that the nation relies on the tolerance of global investors to sustain its aggressive crisis-fighting strategy. On Friday markets were calm, but US government bonds and the dollar declined further.

Both the administration’s fiscal discipline and the Fed’s conduct of unconventional policy face renewed scrutiny and criticism.

The benign view is that this was nothing more than a bump on the road to recovery. As optimism builds, demand for US assets as a haven abates and yields naturally rise. The Fed lets this happen, while continuing to parcel out its announced purchases of Treasuries and other assets at a steady pace. The repricing process is rocky, but this is not the worst problem to have since it reflects the crisis fading.

Calm and balanced rhetoric, but frightening in its import and damning in its implications. It intimates that the US government has great implicit strength in the financial markets, but it is being undermined and squandered by the current administration’s “unconventional policy”. We are being sold down the river for a pipe dream.

"The repricing process is rocky, but this is not the worst problem to have since it reflects the crisis fading."

A crisis fading? With job losses continuing to add up month after month, that's wishful thinking.

It's amazing however, the change we see in how media is reporting the crisis this country is in, and how Democrats in both houses see the state this country is in.

Despite the growth the economy enjoyed during both terms of the Bush admin, all we heard from Democrats and the media was doom and gloom.

But now, when every economic indicator shows the economy continuing to slide deeper and deeper into recession, we have the media and Democrats in both houses trying to paint rosey pictures, claiming this non- existent "stimulus" of Obama's is working, which every economist with a brain knows is a bold faced lie because it takes at least a year for massive amounts of money dumped into the economy to begin showing it's effect.

Plus there's that other fact that all this "stimulus" money Obama claims to be creating jobs with hasn't even left the building yet, and won't until all these proposed infrastructure projects are submitted to the government, approved and started.

I'll bet a dozen doughnuts that trying to find out how many "stimulus" projects have been approved and started is impossible to find out.
Not that MSM would attempt to. That would expose Obama and Media for being the liars they are.

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