InformationKnowledgeWisdom

Programming, Linux Computers, & Opinion

Current Economic Situation

Posted by Reed on Wednesday, September 24, 2008

Is USA headed to same situation as Japan’s lost decade (1989-1999) or England’s decades of malaise? To whit:

credit crunch – banks not lending due to risk aversion, to repair damaged balance sheets or both,

liquidity trap – businesses and consumers don’t spend, they sit on cash often in expectation of things being cheaper tomorrow (deflation), actual deflation, a lack of trust, or best investment available is cash or short-term notes

True depth and breadth of situation is either not being told by our government (or if known, not reported to it full depth and breadth) or they don’t know because they failed to regulate. I’ve read understand financial situation well enough to think otherwise. Actually, I think we are not being accurately informed because our federal government is being lead by egotists Bush and Chaney (and their party wants to put another pair of egotists in control; McCain and Palin).

What I do know. There is:

lack of trust – by consumers, and between banks and financial institutions

excessive risk taking occurred – to satisfy ego and greed

dishonesty – rampant, wide and deep, the list of companies is broad and deep and covers most of Bush presidency (Enron, Worldcom Sprint, Adelphi, Comcast, Bear Stearns, Lehman, Freddie Mac, Fannie Mae, AIG; lack of regulation by Bush administration)

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: