Just keep cranking out that money, ladies.
We have been leery for some time now about the government’s attempts to throw a safety net under the economy and reflate it through trillions in spending and guarantees. It’s always seemed to us that the best cure for profligate spending at the corporate and consumer level isn’t necessarily profligate spending at the federal level.
But today along comes not one, but two, warnings from two big names, Warren Buffett and Bill Gross, about the costs and shortcomings of government spending. A lot of folks are going to say the market’s bout of existential angst is being driven by fears about China’s fortunes, but we think the fears can be traced to developments much closer to home.
