end mark-to-market when credit growth is not matching output growth, is that a plausible regulation?
Quote from thriftybob:
Sounds like:
Everyone try to reflate while we try to lock down the off balance sheet disasters.
All at once fiscal and monetary stimulus.
No mention made of the "imbalances" or how they are to be addressed. Sort of like almost ignoring the Gorilla in the corner. I guess it needs to be done very carefully. I wonder which "macroeconomic policies and inadequate structural reforms" they are talking about????
"4. Major underlying factors to the current situation were, among others, inconsistent and insufficiently coordinated macroeconomic policies, inadequate structural reforms, which led to unsustainable global macroeconomic outcomes."
As I see it the underlying problem is that the US is wanting to borrow and spend the savings of the entire world, and when the world decided our individual and corporate credit were suspect, credit locked up. Ok, now they are back to lending it back to us, but only willing to lend it to our government. How long before our giovernment's credit becomes suspect???
Quote from thriftybob:
No mention made of the "imbalances" or how they are to be addressed.