Which is the expected path forward? (HBR)

There are many arguments and debates over what will happen next in the world of global capital markets.  Trust and confidence continues to wane, and greed and disrespect are reaching broad and deep.  The circumstances as they are, what needs to change?  What will change?  Will 'control' prevail or will 'energy' flow?  There is a lot of energy in the markets right now, QE2 is the market's Red Bull - it's certainly giving it wings.  And Red Bull's success might well show the road for the global economy - or not.  Off topic though.  I continue to believe that the value-credit-debt relationship is shot.  All the effort to prop up the economy until it's back to firing on all cylinders is a lost leader from my perspective.  The world is changing, and I do not believe that we will return to the productivity we experienced, the prosperity we lived in for the last 50 years.  Significant geopolitical events.  Substantive economic-financial events.  And everyone trying to save their own ass - regionality might well grow legs again.  The timeline of the continued deleveraging is unknown.  I believe we will  continue with a significant process of re-valuation - of everything.  In some definitions - a deflationary path.  Get small.  And watch the volatility - and the velocity of money, it will be telling.  And trade price, and only price.  Watching and learning.


Text below extracted from Is Economics Ready for a New Model?

.... What you won't find is many who think the entire infrastructure of rationality-based economics needs to be tossed out ....

.... So if you're looking for a revolution in economics, you'll probably have to wait a long, long while. Butevolution, sure, there's some of that. And lots of cycling back and forth between the belief that, in a market-based economy, everything will always work out for the best, and the concern that markets — especially financial markets — might have a natural tendency to self-destruct from time to time.