slickvguy

Cycles, Recessions, and Looking Forward

The private sector went on a spending binge that it couldn't really afford, and disaster ensues. So what's the government's solution? You got it...spending binge that America can't really afford. Likewise, we got intot his mess thanks to Greenspan not allowing the tech bubble burst to play out. He fought the recession tooth and nail, lowered rates too low for too long, and the rest is history. So what's the govt doing now? Same thing. Instead of allowing the pain to take place NOW so that a true recovery can happen, they are fighting it tooth and nail, which will only delay the inevtiable. Propping up GM? Why in the world would you back your losers instead of your winners? How much more money to be thrown at Citigroup? At AIG? At FNM/FRE? Is there a single major financial company that was properly managed? (And please don't tell me Wells Fargo - they were BETTER than the others, but still not great).

The Treasury and the Fed have been wrong every step of the way. It would be funny if it wasn't so tragic. They have been ridiculously inconsistent and behind the curve. And now we're supposed to trust them to finally get it right? I don't think so. I realize they have an impossible job, but they haven't helped matters by their actions. They've made things worse. Here's my advice to the government: GET THE HELL OUT OF THE F'N WAY! Let the free market take care of this. Let's have a depression if we must. Clear out all the garbage and start over again. Let the winners win and the losers lose. Only then will we be able to rebuild properly.

And this stimulus miracle? What a crock. Did this guy in the article actualyl say 3x the proposed size? WTF? Why would he say that? There's zero chance of that happening. Waiting for govt. spending to save the economy? Are you kidding me? First, it'll have a very small impact. Second, it'll result in higher taxes (or far less public spending) down the road.