Posted By:
Martin NealI don't profess to be an economist, but doesn't anyone think that to fight an unpopular war, musn't your economy appear to be strong? And how do you do that.. the Federal Reserve lowers the interest rates it provides to banks, thus boosting low interest loans and spending (especially in the housing market). I, for one, thought that the housing boom lasted unnaturally long. Where does the Federal Reserve gets its money? It prints it! It is my understanding that the European equivalent of the Federal reserve just pumped in Half a trillion dollars just trying to keep pace with our weakening dollar. They have to keep pace with our inflation just to be able to export their goods to us. Why do you think gold has risen so much? In the long term, inflation will probably be more of a problem than a recession.
Excuse me, but two glasses of wine is making my head spin. I don't think it is entirely fair to blame the banks, mortgage lenders and overextended home owners for this mess, blame the people behind the wheel, whoever they are.