What's wrong with govt?- War in Wall Street

[rhester]

This rescue of the economy reminds me of our liberation of Iraq.

Crisis causes major govt. reaction
Bi-partison support for strong govt. intervention without knowing what the results will be
Playing to the fear of citizens govt. warns that inaction is suicidal
Prediction of victory
Cost of Billions of $$$$$
Prolonged conflict with political finger pointing

So what can we expect next?

No clear victory as things don't improve
Information leaks out that govt. made big mistakes
Things take a bad turn
More political finger pointing
New President deploys SURGE tactic
People are growing tired of the conflict
1/2 the country wants the government get out of the conflict
1/2 the country wants the government to fight to acheive a clear victory

Maybe this is part of our problem, the federal govt. thinks it can fix everything, has failed badly in most cases and yet keeps trying to do more and more...stay tuned

[Major]

The alternative where the government did not intervene (Great Depression) worked out so much better.

[professorjay]

What's your solution then?

[rhester]

The alternative where the government did not intervene (Great Depression) worked out so much better.

That's another he said, she said; there is plenty written that govt. intervention is what prolonged the thing for 13 years.

but my point is look at the track record, I personally wonder why the war on drugs is such a huge success for the money spent.

I really only started the thread because the thought struck me. :D

I certainly am not an economist. :)

[rhester]

What's your solution then?


Well, I don't have a good one, but maybe there isn't a good one! It is a possibility. :)

Also, why do we have the Fed running point on this, didn't they place interest rates well below the inflation rate blowing up these artificial credit bubbles for the past 10 years?

I think there were plenty of sound voices screaming about this problem over the last 10 years to do a very good economic analysis and offer a more preventive solution.

I think debt might be at the root of this thing and so far the best I have heard is we are going to borrow more????

I personally believe and it is a very uniformed opinion that if you have a credit crisis, and you have overleveraged debts and you have a debt load that is a threat to your standard of living and GDP, and the problem is global; that borrowing more (or creating more debt/money supply/bailout/cash infusion etc) is a very good panic solution that might delay the inevitable long enough to blame something or someone other than yourself.