To: nathanbedford
I think the bad news is out. Now it gets better.Actually, the bad news isn't out. The government has stepped in to sidetrack the normal economic cycle by lowering interest rates, injecting massive amounts of liquidity into the system and encouraging further excesses especially by the consumer. Now we have a massive debt problem, a stock and bond market bubble and a real estate bubble . . . and NO pent-up demand. Where is the recovery going to come from?
Richard W.
31 posted on
06/29/2003 8:31:25 AM PDT by
arete
(Greenspan is a ruling class elitist and closet socialist who is destroying the economy)
To: arete
The government has stepped on the economic cycle since Roosevelt, usually with precisely counter indicated nostrums. Yet the economy, with the signal exception of the tightening and free trade restrictions which led to the great depression, has alwaysw staggered back, sometimes at an astonishing rate.
Of course the fed is loosening, and this will inflate for now. Which is the time period we are talking about. Whether you are right that in the long run we ought to leave everything alone and take our medicine now, I cannot see so far ahead. I am glad you can. Please keep me informed.
I am also worried about the supposed real estate "bubble" but lower interest rates will prolong it. Recovery will come from the adjustments being made every day in every business and home which will find new markets, new products, new methods, etc.
To: arete
Where is the recovery going to come from? War? Worked for FDR.
35 posted on
06/29/2003 8:49:16 AM PDT by
sarcasm
(Tancredo 2004)
To: arete
You are correct in your analysis, Richard. The political class refuses to allow the bad debt to be liquidated. The same thing caused the Great Depression. Liquidate, and get it over with.
52 posted on
06/29/2003 11:01:31 AM PDT by
Iris7
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