I believe that stocks are depressed because there is a pervasive feeling that something awful is going to happen. What is this enormous tail-risk? It's the intersection of reckless fiscal policy with overindulgent "Jelly Donut" monetary policy.
Democrats and progressives must become more willing to engage in monetary policy conversation and make the case for keeping the Fed, for using QE and stimulus to get America out of recession, and for more robust financial regulation.
Many liberals, myself included, have long harbored some sympathy for Ron Paul. I suspect that this is not only because of his refusal to follow the neo-conservatives on issues like civil liberties, but also because the man, like a squirrel, has always seemed so very harmless.
Imagining money is a good and healthy thing. It stimulates productivity, feeds dreams and gives man a sense of purpose. But there's a difference between imagining money and imaginary money, which is what we have today.
Eliminating the Fed, adopting the gold standard and having a tight monetary policy are directly opposed to the occupiers' key goals: reducing unemployment, easing debt and stemming the foreclosure flood.
Christopher Sims and Thomas Sargent won the Nobel Prize in Economics for research on measurement in macroeconomics. While some intellects might not follow The Dismal Science this year, this research has particular relevance for students today.
I feel strongly that the global community is beginning to respond to our shared plight. Why? Three reasons: a shared sense of urgency, a shared diagnosis of the problems, and a shared sense that the steps needed in the period ahead are now coming into focus.