Like any magician the Treasuries and Central Banks of the western economies and followed by the rest of the world can not stop the price declines of the stocks; because their remedies are late and ineffectual. It is the same medicine used since 1929, 'The Keynesian theories of macro economic management' which can not cure present decline, even though for seventy years this worked. Like old medicine maybe it never cured only alleviated the symptoms and pushed the effects to lower levels, just to come back some time later in a more potent form. These recurrences are what we call recessions and depressions which were never fully understood after Keynes. Defiantly, pushing billions of dollars in different formats and labels will not solve the issues and the slide can not be arrested. We are so close to the bottom falling we must be very carefull not to waste any more on old failed stop gap policies.
Very much possible we expect BLACK FRIDAY OR MONDAY this week or latest next week. If this happens we will go to very uncharted territories and very dangerous. We need to look at new options for the US and EU countries such as:
Closing the exchange houses for a month!
During this month stabilize the credit market and get funds moving in.
Also stop any foreclosures for three month.
The Governments must participate fully in the management of the bailed banks.
The economists should study how to set totally new guidelines during this THREE MONTHS.
djirdeh
