The lack of bad news for a couple of weeks isn't the same as getting good news or making fundamental changes.
That rather obvious truth didn't slow down the ridiculous bear market rally of the past few weeks though.
The structural problems in the economy and in large companies like GM and AIG are too complicated to deal with by just printing money.
It has been said that supply side economics was originally jotted down on the back of a napkin. Given the results I can believe that- supply side economics is a lame excuse for greed that never made any sense. If there is no demand there is no economy. It isn't enough to have supply.
What we need is real economics combined with a change in the way that governments and corporations are administered.
Some of those problems will be eternal, for instance that positions of power and influence will draw those who want to abuse those positions. The only remedies for that are eternal vigilance and the protection of whistleblowers.
Changing stale corporate cultures, such as what happened with IBM in the 1990s, can take years even when successful. Most companies could never make the changes that IBM did.
There is only one Lou Gerstner and there is only one Lee Iaccocca. Reforming a huge operation requires a unique individual.
Gerstner wrote a book called "Who Says Elephants Can't Dance?"
Gerstner taught one elephant to dance. To get the world and especially the US out of the slump we need somebody that can get elephants to form a conga line.
Good luck.
Don't be going long on indexes.
