The issue of insider trading from information emanating from Treasury Secretary Paulson's office was a focus of ruminations from this corner some four years ago. But hard questions, perhaps until now, have been few and far between.
Smart delevering isn't just about cutting -- and the relentless emphasis on cutting has obscured the more important question of what is being cut. In far too many cases, our approach to delevering is keeping us from growing, and keeping us from tapping into all our resources.
On Friday S&P downgraded U.S debt from AAA to AA+, the first such downgrade in the nation's history resulting in grave concerns over the outlook for the U.S. economy. Yet simultaneously they must have been popping champagne corks at Pimco.
In a nutshell, the Fed's plan is to create a "wealth effect" by buying Treasuries. The theory here is as asset prices rise and consumers feel wealthier, they'll spend more, in turn helping to revitalize the economy.