Previous Treasury Secretaries Rubin and O'Neill both stated in an interview broadcast today that another round of stimulus was unnecessary and ultimately the troubled economy would gradually become stronger on its own. Now this is not surprising since both have been proponents in the past of financial deregulation and a blind faith in the market's ability to figure things out, as it did when it figured out assets of almost every class were no good after deregulation allowed leveraging of worthless bundles of debt. Prudent financial stewardship will work, according to the two Secretaries, though neither could quite see the recovery horizon, or for that matter, see now much current market equity prices are supported by notions of future stimulus.
Without an additional dole, the road to recovery will be much longer than the two are predicting, especially if market players figure that being ahead of the investment curve is a sell and not a buy.
