Many People Have Over-Reacted To The Actual Health Threat

The crazy thing is that while so many people have over-reacted to the actual health threat posed by Covid-19, they have under-reacted to the grave financial and economic threats posed by the increase in government spending, borrowing, and money printing in reaction to Covid-19!

The U.S. Needs More Savings

Powell was asked what the Federal Reserve can do to make the economy more resilient to these type of shocks. The question is ironic as its the Fed's fault the economy is so vulnerable to these shocks in the first place. What's needed is more savings, which requires higher interest rates!

Two Wrongs Do Not Make A Right

Unfortunately, there is now a growing consensus that since we have abandoned capitalism during bad times, we must also abandon it during good times. If we socialize the losses, we must also socialize the profits. While this is logically consistent, two wrongs don't make a right.