There are many reasons to be optimistic. The economy, however, is not one of them. I am surprised by the rebound in confidence in those who recently thought they were lost who now believe they are saved.

We are indeed in a rebound, a rebound caused by enormous amounts of borrowed money being poured into economies in the hopes of keeping them functioning until private investors feel it safe to return.

When government money dries up (if it doesn't that's another problem altogether), the rebound will revert to the contraction it replaced. Mervyn King, the head of the Bank of England, for the first time supported an increase in the stimulus greater than did the Bank itself.

The Bank did not support King's proposed increase only because to increase the stimulus now would send a signal that England's economy is doing worse than expected. So the false hope the present stimulus would achieve was continued even if a stronger stimulus is needed to keep the recovery alive.

When the medicine runs out, the patient will die. Then, and only then, a better system will hopefully replace the one we now have.

 Good luck,

Darryl Robert Schoon

www.survivethecrisis.com

www.drschoon.com