Capital Commerce

Save the Stock Market, Save the World

December 22, 2008 RSS Feed Print

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Paul Krugman makes this point today in the NYT:

To be more specific: the severe housing slump we’re experiencing now will end eventually, but the immense Bush-era housing boom won’t be repeated. Consumers will eventually regain some of their confidence, but they won’t spend the way they did in 2005-2007, when many people were using their houses as ATMs, and the savings rate dropped nearly to zero.

Me: I cannot overemphasize the importance of reenergizing the stock market. Asset-based wealth will continue to be critical to our financial future. Policies must be vetted with that in mind.

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Clinton gave us bubbles.
We need stable markets where housing supply matches demand and grows at a steady pace.
Same with stocks.
Too much anti-business / anti-capitalist nonsense being spewed by Obama, even now.
Wall Street, CEO's, auto executives, "corporate greed" and other various bogeymen obscure the issue. Business is the life blood of this economy and this nation. Fraud and crime will always exist. But don't throw the baby out with the bath water. The fantasy that we can just regulate away problems is harmful. It brings Sarbox and other economic poisons.

Pat of IL 3:28PM December 23, 2008