Thursday, January 22, 2009

Which Part Of "You Break The Spin By Getting The Stick Forward" Don't These Nimrods Understand?

There are far too few trained pilots in the governing/financial class. They keep acting like the credit/interest rate lever is the make-the-economy-grow lever. This is no more true than that the up elevator control (pulling on the stick/yoke in an airplane) is the make-the-airplane-go-up control. Yes, pulling on the stick will make you go up, provided the engine is running and you are at cruising speed. Otherwise, pulling on the stick is the get-you-killed control. And the harder you pull on the stick in reaction to what the plane just did because you are pulling on the stick, the worse things are going to get. Your options: keep that stick back until you impact the ground vertically with no chance of survival, or get that stick forward so that you can glide to a controlled crash landing (which is what the airline captain who put his plane into the Hudson did).

Our leadership is a wretched bunch of bozos. All of their "spin training" is of precisely the wrong kind.


We all know how we got into this economic mess. We spent too much, borrowed with abandon, and acted like the bills would never come due. So what's the prescription for getting out? Spending more, borrowing more, and acting like the bills will never come due.

When something sounds too good to be true, it usually is. This alleged cure deserves special scrutiny because it invites our policymakers to redouble the very policies that caused the crisis. Congress and the new administration are all too eager to abandon restraint so that we can overcome the consequences of excess...

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