Talking has overtaken doing

Congress in the US had been talking for more than two years about the risk of over $2T in unregulated assets under management. Less than one month before Uncle Bernie had his epiphany, Chairman Waxman listened to five top managers testify in DC. The debate rages on, what are the potential implications of more regulation, or the risks of not doing anything? In the meantime, we are learning of the many many funds and managers that are frauds. And along came Bernie

In this piece on global imbalances, the dicussion is around the need to rebalance. With all the arguments pegging the USD to fail, here it is stated that the USD will remain part of what will become a basket of world currencies. It postulates the imbalances had a beginning in the reserve status of the USD. And a fella Triffin, warned Congress of this in 1960. A potential solution in the late 90's early 00's to refuse supplying global liquidity is considered. And then we are reminded that this had already happened to the British pound between 1918-1930 (large sterling balances overseas). Then we are also reminded that the Treasury Secretary in the mid 60's again made the same assertions. Providing the world a reserve currency was too much burden for one country. Global imbalances and the Triffin dilemma (thank you Paul Kedrosky)

We never want to hear what we do not like to hear. But sometimes we have to be told. Our daily world is filled with advice and warnings and cautions, much of it from someone trying to sell something to us. The trick is sorting through it and grabbing those pieces relevant to your world. Seems like we have some work to do to get us there.