What Have We Learned in the Past 13 Years?

[Owlet]

What exactly has America learned since January 1, 1999, 13 years that included two stupendous financial/credit bubbles, two hot wars and an explosion in public and private debt? If we examine the policy changes and institutional changes since the 2008 global financial meltdown, then we have to conclude that we've learned a very few things:

1. We've learned that the way to "repair" the catastrophic damage of a financial bubble bursting is to inflate another financial bubble in another asset class.
2. Systemic incentives will be put in place for everyone to speculate in the new bubble, with two important caveats: the Financial and Political Elites will get to play the game with moral hazard, i.e. their gains will be private and their losses socialized, and second, these Elites will not be governed by the rule of law; blatant systemic fraud and embezzlement will be ignored or forgiven.

much more at link

http://www.oftwominds.com/blogjan12/what-have-we-learned01-12.html

[bemildred]

1. Ok, I quite agree, except for this:

"In the U.S., the market has been manipulated and suppressed but there is no black-market outlet for reality."

The underground economy is a bit under 50% here, IIRC from a recent story, and I consider that precisely the real economy re-asserting itself.