The case for pessimism

For those hoping for a positive, upbeat post today, you’ll have to look elsewhere.

The direction world leaders are heading doesn’t bode well – it seems each country is trying to out do its neighbours in repeating the mistakes of the past and making our economic woes even worse.

On this topic, Detlev Schliter once again warns of worse to come.

Over at Zero Hedge, we see the same concerns raised.

And finally, at Krugman In Wonderland, we see how mainstream economists are trying to solve problems using the very same means that caused the crisis.

Happy reading it is not. But if these guys are right we had better take notice, and fast.

The institutions that caused this crisis are still with us, unchanged, even if the individuals in charge may have changed. There has been call after call to change our banking system in one way or another – new taxes, regulation, banning certain practices and even outright nationalisation. Yet the Bank of England has come through this crisis with barely a scratch – there have even been calls to expand its role in the banking sector. Until this institution at the foundation of our economy is exposed for what it is, we will only be treating (however badly) the symptoms of the crisis and not its cause.

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