The world's markets aren't repaired. they're just being propped up. That is what John R. Talbott thinks. I can't quote the article in detail because it's privileged content but the link is here (and it's worth signing up for the Business Spectator).
Isabelle Oderberg: You’re coming out to Australia to promote your book, The 86 Biggest Lies on Wall Street. If you had to pick one, the biggest and most damaging lie told by Wall Street that helped get us into the crisis we're in, what would it be?
John R Talbott: I think it would be this lie that I think originated in the United States back in 1981under Ronald Reagan that free markets work best without any government interference and it was taken almost as a religion that if there was any government regulation at all, it interfered with the proper functioning of a market and the supply and demand curves and we ended up at sub-optimal levels of equilibrium.
What we found out is that that’s complete nonsense and if you’re a student of economics, you should’ve known it beforehand, because students of economics know that you can’t have a free market unless you have lots of regulation. You need to protect against fraudulent behaviour. You need to enforce contracts. You need to protect property rights. You need to have a very well developed judicial system and if you look at the countries of the world, this is what the poor countries of the world are lacking. They don’t have the rule of law, they don’t have good institutions and thus they don’t have strong markets and good economies.
Talbott's advice is to watch for commodity prices to fall next year when the stimulus runs its course. Also, this isn't the recovery you thought it was. This is merely the first drop and rise in a 'W' curve. And Obama's not doing enough to fix Wall Street.
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