'08 crisis

started out as a policy of regression toward normalization is now a rout. This isn't a slow walk toward policy reversion from incessant rate hikes.

What we're looking at is expansion and interest rate cuts to stem a collapse of confidence in short-term credit instruments.

The most dangerous component is that the Fed isn't commanding anymore, its chasing events. The Fed is forced into policy actions that betray a startling lack of confidence in its abilities.

In sum: the entire US financial market has permanently evolved into a vast subsidized machine that benefits debt instruments and multinational companies hooked-in to government subsidies. Does this remind you of a particular Asian country?

For those willing to criticize other political economies, the US looks fine, but only on the surface. We don't have sustained earnings growth, nor do we have bright new initiatives demonstrating a confidence in new product developments and radical IPOs. We've got a churning of debt to sustain government only.

And the chatter-class wonders why the US is postured toward populism? What the working stiff knows is that the dollar is destroyed and with it, the once outstanding confidence and efficacy that underwrote American institutions.

What team Fed is doing is extending the business cycle. But don't get fooled by this accelerating intervention. For it presages the death of both the dominant political class and its dream of a neoliberal world.