US Fed: Postponing the Necessary

Published in Mint on Jan 25, 2008

Explains not only why the rate-cuts will not prevent a Recession, but also as to why the Fed should not even be trying to prevent a Recession.

US has to transform itself from an Economy that borrows for consumption to one that saves for production. & there is no way that such a transition can be effected without a deep and painful Recession. That's just the price that US has to pay for decades of their consumption binge.

End of Subprime Consumption

Published in BL on Jan 22, 2008

Explaining why these are the early stages of the US Consumption bubble deflating. The immediate list of casualities post the subprime housing debacle would be the housing Industry in general, the EZ Car loans and then the credit card Industry -- all of which are "sub-prime" by definition.