It's becoming pretty clear to me - that when it comes to economics and finance I don't have a clue! And, apparently, neither do the folk who make finance their business: according to a New York Times article (February 19) “People don’t know what’s out there..." Phrases like "dire predictions", "driven by fear", "not supposed to happen", "reduced to rubble"... Yes, a financial analyst who can say things like Not Supposed To Happen! That's not somebody I want to manage my portfolio. A friend of mine used to say that if you want financial advice, you shouldn't ask somebody who's living in his car. Pretty soon, that might be the only place you'll be able to find financial experts!
But Wait! There's a solution. Here's Ben Bernanke's explanation of the problem: 'Last week, Federal Reserve Chairman Ben Bernanke told Congress that the central bank's most recent survey of senior loan officers at large banks found further tightening of loan standards. "Credit that is more expensive and less available is a restraint on our economic growth," stated Mr. Bernanke in his testimony before the Senate Banking Committee.' (Christian Science Monitor, Feb. 19)
The problem, it seems, is that as the value of our debt goes down, our economy goes down with it. We're suffering from a shortage of debt. So now, armed with this insight, our government is taking action. Increasing our indebtedness - actually, the debt owed by our children and our children's children, by some TBD amount. A Hundred-And-Something Billion. For openers... They'll send you the check, and send the bill to your children, when they (your children; not the Congresspersons) get a job and become good honest hard-working taxpayers. Except by then it will be important to "Let the hard-working people of America keep more of their money in their pockets", and cut taxes for That generation also. And pass it along to Their children and grandchildren, etc.
When you or I try to do this, we get arrested for running a Ponzi Scheme. If We The People do it though, or our dauntless Congressmen-and-women do it; it's legal (I guess).
Caveat: If you try to save this money the government is "giving" you, perhaps to pass along to your children so they can pay their taxes; All Bets Are Off!
Because the whole problem started (remember?), when we stopped getting farther into debt. You must spend this money the government is (say it again) "giving" you. Enjoy the ride?
But Wait! There's a solution. Here's Ben Bernanke's explanation of the problem: 'Last week, Federal Reserve Chairman Ben Bernanke told Congress that the central bank's most recent survey of senior loan officers at large banks found further tightening of loan standards. "Credit that is more expensive and less available is a restraint on our economic growth," stated Mr. Bernanke in his testimony before the Senate Banking Committee.' (Christian Science Monitor, Feb. 19)
The problem, it seems, is that as the value of our debt goes down, our economy goes down with it. We're suffering from a shortage of debt. So now, armed with this insight, our government is taking action. Increasing our indebtedness - actually, the debt owed by our children and our children's children, by some TBD amount. A Hundred-And-Something Billion. For openers... They'll send you the check, and send the bill to your children, when they (your children; not the Congresspersons) get a job and become good honest hard-working taxpayers. Except by then it will be important to "Let the hard-working people of America keep more of their money in their pockets", and cut taxes for That generation also. And pass it along to Their children and grandchildren, etc.
When you or I try to do this, we get arrested for running a Ponzi Scheme. If We The People do it though, or our dauntless Congressmen-and-women do it; it's legal (I guess).
Caveat: If you try to save this money the government is "giving" you, perhaps to pass along to your children so they can pay their taxes; All Bets Are Off!
Because the whole problem started (remember?), when we stopped getting farther into debt. You must spend this money the government is (say it again) "giving" you. Enjoy the ride?
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