Stupid question. Has the mandate by Congress forcing banks to give loans to basically anybody and everybody been reversed or eliminated? In other words, has the main reason for our current economic situation been corrected?
From Denninger's article ...
" ... As things stand today I have no confidence whatsoever that The Obama Administration has any intention to act according to law any more than George Bush's Administration did.
As a consequence until and unless the government's position and actions change my "base case" economic forecast must remain bearish and over time continue to grow more bearish; without the 2/3rds of all capital that is private in our economy, even with supplanting of that capital from the government (to the extent it is able) I believe we are looking at a potential 30% contraction in GDP from top to bottom and unemployment reaching north of 20% on U-6 (broad form), with the very real possibility of a 20% headline number ... "