Posted by
Tom L. on Wednesday, February 04, 2009 6:00:00 AM
One day I left a saw out in my yard. A kid walking by, took the saw and used it to cut down my neighbor’s tree. I felt really bad that some dumb kid sawed down my neighbor’s nice tree, and even though I had left the saw out, there was nothing I, my neighbor, or even the kid could do to put the tree pieces back to make a living tree.
The government played a role in the current economic mess (it was not watching the saw) and some big bad business people (with our help) destroyed our prosperity (cut down the tree). All that does not mean that the government can do anything to “fix” the economy.
Only God can make a tree.
The economy will get better. It may be painful in the short-term, but much better for all long-term.
The housing bubble was just that and it burst. People were buying houses with money they did not have, knowing (hoping) that they would be able to sell the houses at a profit. Banks and financial institutions went along and leant the people money. When the merry-go-round stopped, everyone was thrown off.
But, DUH, housing prices are dropping and when prices drop, people buy more.
With all the “toxic” assets out there, banks stopped lending money. Short-term government loans/backing was needed to get the economy going again and there are signs it is beginning to stir.
Any part of any stimulus package that does not impact the economy within the next 12 months is not a stimulus - it is just government spending on a grand scale.
Doing nothing may not have been an option, but doing everything is just plan crazy.
Even forgetting about the inflationary impact of huge government borrowing, GenX, GenY and their children and grandchildren will pay the price, both financially and in their standard of living.
The panic of late last summer and early this year should not be allowed to cause the government to totally ruin the economic future of the nation (burn down the forest).