Steven Pearlstein: Before This Hole Gets Deeper, a Break From Digging

Remember the Rule of Holes: When you find yourself in one, the first thing to do is to stop digging.

Right now we’re in one of the deepest economic holes anyone has ever seen. And what we need to do is to stop making things worse by continuing to over-rely on financial markets and financial institutions that have proven to be incapable of performing their core missions: getting capital to where it needs to go and pricing that capital in a way that reflects the risks and underlying economic values. We have to stop digging. Another week like this one, and there won’t be much left to rescue.

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Posted in * Culture-Watch, * Economics, Politics, Credit Markets, Economy, Globalization, Politics in General, Stock Market, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--, The September 2008 Proposed Henry Paulson 700 Billion Bailout Package