Comment: Weak

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Weak

Reagan was foolish to appoint Stockman as the budgetary chief. Probably by 1980s there were not many sound economists left who wanted to serve big government....

Stockman's complain about leveraging reveals he does not understand Wall Street workings. He focuses on the wrong thing. By encreasing the risk, the traders encrease both loss and profit. They usually set margins and hedges to make it manageable. The betting risk cannot bring economy down, since for every loss on one side there is equal gain somewhere. Lenders of the leveraged money, banks, should be alert, however.

But banks are "too big to fail" and FDIC insured being SYMBIOTIC part of USA corporatism (big gov + big business + big labor.)