Why Washington Urgently Needs to Break America's Negative Feedback Loop

[THP]

It has been a rough four weeks for America. Grim economic news, paralyzing political infighting, and the shocking loss of the sacred AAA sovereign credit rating. To make things worse, Americans' equity-heavy 401k's have suffered from a volatile 16 percent decline in the broad-based S&P stock market index.It is tempting to dismiss all this economic, political and market volatility as just the usual -- volatility that constitutes irritating "noise" rather than insightful "signals". After all, economic data always fluctuate, politicians always posture, and markets overshoot both on the way up and on the way down. But, be very careful before you are opt for this seemingly comforting interpretation.More...

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