Why can't they just come out and say it?.....

Send us a big check and we'll cure the economy, stupid!!!!

Richard Koo Explains It's Not The Fed, Stupid; It's The Fiscal Cliff! | ZeroHedge

RICHARD KOO, CHIEF ECONOMIST, NOMURA RESEARCH INSTITUTE: Well, it is beginning to look more like Japan. The amount of house price declines, the commercial real estate price declines there, all following the Japanese pattern very precisely and very slow GDP growth, even with all this monetary easing, QE2, possibly QE3. So yes, to me, the United States is going through the same process of what I call balance sheet recession, that Japan went through 15 years earlier. BOLTON: You mentioned the possibility of QE3. What should Ben Bernanke do today in his speech and then what should he do as a follow-up action? KOO: Well, actually, the Japanese experience told us that when private sector is minimizing debt or deleveraging with very low interest rates, there's very little monetary policy can do. In fact, Chairman Bernanke has been saying, since the middle of last year that this is no time to cut budget deficit. The fiscal stimulus should be in place because I think he also understands that under the circumstances, there's so little that monetary policy can do. But there's a lot the fiscal policy can do to keep the U.S. economy from losing its bottom. BOLTON: Richard, how. KOO: And so I think he should continue to push that line. Yes? BOLTON: Continue to push that line and maybe try to subtly encourage Washington to take a little bit more control. Sounds like you think that Congress should do something. KOO: Yes, because when people are deleveraging even with zero interest rates, that means they are very sick. The private sector is very sick and in need of help because their balance sheets are under water. And then that's t