I write on sports, politics or whatever I'm thinking about at the time. My posts indicate what I'm thinking about, not necessarily what I actually think, but I do try to make them accurate and informative.
Monday, March 16, 2009
Don't believe these people anymore!
So, I also read today, in USAToday, that the Fed Chairman, Mr. Bernanke, thinks that we will avoid a depression and that we will show signs of recovering from the economic recession by year's end. Really?! This is one of the architects of the housing bubble, one of the architects of low interest rates which left us nowhere to turn when things went bad and one of the guys behind giving out billions of our taxpayer dollars to undeserving companies that should be allowed to fail. Why should I now trust his opinion. In fact, we have a bunch of politicians who seem to have suddenly changed their tune on the economy. Our President last week said things were awful, then a few days later turned around and said things weren't as bad as they looked! Oh really Mr. President? Which is it because you can't have it both ways. I know that trying to have it both ways is politically expedient. Perhaps someone finally pointed out to him that every time he made a speech full of economic gloom and doom, the markets reacted negatively. Uncertainty is the real culprit here. The President needs to decide which socialist policies he's going to put in place and get it over with. Only then, once the corporations know what set of rules they are playing under, can things begin to get better. This is unlikely to happen because the administration is clearly following the New Deal playbook, meaning they are trying anything and everything they can try. This only makes the problem worse because it achieves nothing except increasing the amount of uncertainty. This is why the markets react badly everytime the President makes a speech. Stop talking and stop trying to fix it and it'll get better Mr. President and Congress too. Of course, that advice is considered laughable by people in Washington, so they won't heed it. Therefore, prepare yourselves for a depression because these people don't know what they are talking about.
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