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Post-Bubble America »

Posted by: populist 1 year, 9 months ago

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The Federal Reserve and Washington policymakers are still stuck in the past trying to revive consumer spending by creating another equity bubble with low interest rates and their $600 per person "stimulus" giveaways. Wrong way.

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populist

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TheRealizer
March 8, 2008, 2:10 p.m.
Systematically our elected and non elected officials are dismanteling our economy and our nation. Something has to change or we rapidly will become a third world-beggar nation.
We are at this point for sale to anyone, anyhere in the world with U.S. dollars derived from an illconceived trade imbalance. We import poverty, we export wealth!!!!!!
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david_nwpa
March 9, 2008, 12:01 a.m.
I find it incredibly disheartening to read that the FDIC is increasing staff at regional offices to deal with the onslaught of failing banks. If the banks are so foolish as to continue to lend predatorily in the subprime market, they deserve to lose their shirts. However, the cost to investors is enormous. Many of these investors in the banks have saved money for years.
The author is right on when he suggests that the real problem looming for the economy is deflation. Prices are not up right now as a result of high demand and low supply. Prices are higher because of increased costs in fuel. Eventually those prices will drop, but the dollar will be staggeringly lower than it should.