Saturday, January 1, 2011
Will 2011 be Better?
Perhaps the best way to begin a prediction about 2011 is to see how I did in calling 2010, something I referred to as "Hope for a Decade Lost".
I wrote: "I wondered what economic nationalism would bring. Banks in major countries all were faced with unprecedented decisions, conundrums of epic proportions and no real template in which to test their theories of recovery." This played itself out in revelations about the Fed helping banks cover short-term losses and in doing so, helping to avert the potential for a major global crisis.
"In June of this past year," I wrote about 2009, "President Obama suggested that the Fed have greater power in regulation of more than just banks, proposing that the power of the Fed be extended to the whole of the financial system. With this expansion, the Fed would move beyond its control of interest rates and inflation (both of which were kept abnormally low and will begin their gradual uptick in 2010) to the role of financial police." This did happen but was softer than expected. I had hoped that someone responsible for the mess we are still in to be brought to justice - but that didn't exactly happen.
Read the full article here.