U.S. economy in major trouble
Posted by silentarchimedes on September 16, 2008
Most people in the country still have not felt the impact of the economic troubles, but make no mistake, the economy is teetering on the brink of a major crisis. When financial stalwarts like Bear Stearns, Merrill Lynch, Lehman Brothers, and AIG collapse, you know something is brewing. The last two recessions, both during the two Bush presidencies, never saw the collapse of major corporations. What most economic followers know is that they should have. Instead of letting the recessions naturally play out, the Bush administrations and the Greenspan Feds interfered too much by playing with our futures for the sake of the present. The early 1990s recession ended because of a huge increase in credit card use and personal loans. The early 2000s recession ended because of easy access to home mortgages and personal loans. Both recessions saw a huge infusion of dollars onto the world markets. Both of them are now biting us in the butt. This is a major credit crisis on our hands. The government must let it play out. Another band-aid and we will just have a more devastating crisis in the near future.