NP - Toryism (Austerity) Isn't Working.

[Mark Kohut]

Goes out to Alice for her global perspective.....
 
http://www.aljazeera.com/indepth/opinion/2012/04/2012423164839425416.... 



----- Original Message -----
From: alice wellintown <alicewellintown at gmail.com>
To: pynchon -l <pynchon-l at waste.org>
Cc: 
Sent: Saturday, April 28, 2012 3:06 PM
Subject: Re: NP - Toryism (Austerity) Isn't Working.

Population, over, under, younger, older, ageing, living longer,
migrating, demographics, an important and difficult thing to take into
a account when measuring, analyzing, managing risks.  Population in
the US should be a positive over the next few decades, another reason
why I suspect the Lost Decade fears are exaggerated. We are not Japan
is so many ways and our population differences, and the bahavoir of
populations, on terms of things like saving and investing, housing
...are quite different. The Fed's Twist is keeping Mtg Rates low and
stong individual balance sheets will get money and the tide will turn
in the housing market, returning to a normal market, one that doesn't
bubble up but keeps pace with inflation. The yield curve will shift,
as lenders, who take the principal risk, must be rewarded for lending
monies out for building and housing in 30 year or more loans. The Fed,
once confidence is restored, a confidence that was shaken but which
did not collapse because, as Ben noted, the US had built quite a lot
of credibility by keeping rates low and prices stable and so on, so it
must continue to do so, and, at the same time, get the lenders lending
and get the yc shifting to reward risk on the longer end. This is not
easy and it is painful, but it is not Japan. We are not Japan. We
don't have to deal with and we won't deal with 15-odd years of zero
rated w/o growth. The system is recovering, slugish, but still on its
way. Keep the faith. Fight the good fight. This too will pass.