"The mind is a compact, multiply connected thought mass with internal connections of the most intimate kind. It grows continuously as new thought masses enter it, and this is the means by which it continues to develop."

Bernhard Riemann On Psychology and Metaphysics ca. 1860

Today's Elites

Friday, October 03, 2008

Way too little, way too late

While today's NY Times article exposing the SEC does a service after the fact in uncovering some of the chicanery unleashed by the pro deregulation crowd, the economic problem that has been posed from the beginning of the creation of exotic and esoteric derivative instruments of speculation goes unchallenged. However, it is the mindset that created these speculative instruments that are now "deleveraging" on a gargantuan scale that is threatening us all with a financial collapse of historic proportions. Until and unless that mindset that created this disaster is effectively exposed and replaced by a return to sound credit policies instead of attempts to bailout the malefactors at the expense of the real economy, all such analyses, however enlightening are merely the proverbial whistling past the graveyard.

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