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Stability or False Hope?Stability or False Hope?

The financial markets are no longer trading as though the end of the world is nigh, and for that we can all be thankful. Liquidity has been restored to key sectors of the credit system, and balance sheet repair is under way throughout Corporate America. But the reason for the return of stability is obvious: The government, through the offices of the Treasury Department and the Federal Reserve, has

Michael E. Lewitt

September 1, 2009

5 Min Read
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Michael E. Lewitt

The financial markets are no longer trading as though the end of the world is nigh, and for that we can all be thankful. Liquidity has been restored to key sectors of the credit system, and balance sheet repair is under way throughout Corporate America.

But the reason for the return of stability is obvious: The government, through the offices of the Treasury Department and the Federal Reserve, has massively increased its presence in the U.S. economy. Whatever thin reeds of growth have poked their heads through the ground are almost entirely due to government stimulus.

Few experts seem to be able to point to the sources of future growth once the government stops playing Johnny Appleseed. And while Corporate America may be r...

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About the Author

Michael E. Lewitt

Mr. Lewitt has spent the last 25 years in the securities industry and the last 20 years in the investment business.  Mr. Lewitt co-founded Harch Capital Management, LLC in 1991, where he was the co-lead portfolio manager (1991-2001) and lead manager (2001-2011) for all of the firm’s client assets including separate accounts, hedge funds (long and short), collateralized debt obligations and mutual funds focused on the less-than-investment grade debt markets for U.S. and non-U.S. institutional clients as well as high net worth individuals, family office and foundations and endowments. Since 2001, Mr. Lewitt has edited and authored The Credit Strategist, a newsletter that covers economics, politics and the financial markets and that is widely read around the world.   Mr. Lewitt is recognized as one of the few investors and strategists who accurately forecasted and successfully managed client assets through both the 2001-2 credit crisis and the 2008 financial crisis.  Mr. Lewitt serves as a regular financial columnist for the Spanish newspaper El Mundo and has written for The New York TimesThe New RepublicTrusts & Estates and other publications.  In May 2010, Mr. Lewitt published The Death of Capital:  How Creative Policy Can Restore Stability (John Wiley & Sons). The Spanish edition of the book, La muerta del capital, was published in June 2011. Mr. Lewitt graduated from Brown University (Magna Cum Laude; Honors in Comparative Literature and History); was a PhD candidate in Comparative Literature at Yale University; and graduated from the New York University Law School (J.D.; LLM in Taxation).