Why don’t the reulators, policy makers, players and pundits just admit there’s a problem. I find it extraordinary that Bernanke and co won’t admit there’s a recession. If they think that they can talk their way out of this downturn, how we can we believe that they will be able to re-engineer the financial system so that this does not happen again. The root cause of this meltdown has been moral hazard and here they are again destroying their integrity and credibility.
And the failure to face the facts is merely prolonging the pain and the ability to adjust. The markets will only hit bottom once the admission has happened – so get on with it!