The myopic fixed attention on "the Market" in Western countries betrays the fundamental underlying falsehood with the current socio-economic model. The falsehood is that a given Market index is a true indicator of the state of a country's economy. It follows, therefore, that the market must be propped up to save the country. This is a case of the tail waging the dog.
There are several truths to be understood. The first is that there is no relationship between the health of the economy and the so called "Market". The first chapter of "Sabotaging America" shows how economic bubbles cause the "Market" to go ecstatic, while the real economy is being destroyed. Similarly, layoffs and outsourcing cause the "Market" to rise. The second truth is that the "Market" is constantly being manipulated by speculative activity. The lunacy of the "Market" was exposed when one lone trader managed, in under an hour on May 6, 2010, to wipe 10% off the value of America as indicated by the "Market". In such obvious market malfunctions, only those possessing an ideological, faith based perception of the "Market" could continue to believe in such a farrago.
My next blog will indicate what should be done about the monstrosity
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