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Quote by: Bobby O People always seem to talk about a "major economic depression" whenever the GOP is running things. The economy was going to tank after the '87 stock collapse, Ravi Batra wrote of a coming great depression in the early 90s, and I guess now folks have the same dread.
Relax, it ain't happening |
Were it not for the actions of the FED we surely would have seen a collapse back in 1987. If you read the article in OP you will quickly realize that the FED has just about run out of rope now. There is so much government debt already that other countries will no longer fund this unless interest can be raised. But interest can not be raised without breaking the housing bubble and stopping consumption. The only money for consumption right now is coming from home equity because there are no longer any real wage jobs! All the good jobs are in other countries now.
Yes, the economy was bad when Bush Nero Jr. came into office but he has done nothing but put gasoline on the fire. He should have greatly increased taxes of the rich, got the U.S. out of the WTO, reduced government expenditures (namely by not getting into Iraq), and closed our boarders.
But he has done exactly just the opposite!