For months as I listened to all the “conversation” about the “green shoots” and watched the stock market going up and up, I had a funny feeling that something is not on the up and up but I dared not write a word. On what basis? But last night I tuned in to the last minutes of the Charlie Rose show and heard Michael Lewis, the man Rose said was described to him “as best writer about economics today,” express similar sentiments:
CHARLIE ROSE: And you think maybe more bad news is to come.MICHAEL LEWIS: I do think that. I think that the scope of the losses has not been completely acknowledged by the government. I think that the approach that they’ve taken has been to sort of — it has been — you know, it works, up to a point. The Obama administration especially has been very good at creating false confidence, they have been very good at talking up the financial institutions, and it is true that.
CHARLIE ROSE: But it’s not just the Obama administration, I mean, it’s outside the Obama administration. I mean, I saw a ticker go today, “Bank CEOs suggest recovery by end of year.”
MICHAEL LEWIS: Right.
You may wish to read (or watch) the rest. It is not pretty!