This just in, President Bush understands the nature of cycles. Like most things the economy is a cyclical thing, and it will recover. The President said so himself. It’s a pretty safe statement, especially when we consider that he did not say WHEN it will recover.
Hey, he’s the President, not a fortune teller.
And he’s right when he says the economy will “bounce back,” because it will. Just like it will bounce down (is that the right term? is it even a term?) because that’s what economies do. They fluctuate, especially one in a so called free market system. So Bush is at least smart enough to know that the economy will get better.
What he, and everyone else in our government (and the world’s government) doesn’t seem smart enough to understand is that more lending is not the answer. Give the banks cash so they can start lending again. Never mind the fact that it was all this lending (and lack of regulation) that got us into this mess in the first place. I know, you have to have money to make money, but this just seems like slapping a band-aid on a gunshot wound to the guts. It’s a temporary solution, and not a very good one at that.
People cannot afford to pay the bills they have now, how will they be able to afford new debt they acquire as the banks start handing out money again?
It may seem like a silly and straightforward question, but it doesn’t seem to me like anyone has realy given it much thought. They may have, I don’t know. I am no more a mind reader than Bush is a fortune teller, and I have not been to any of these meetings or councils or sit downs, or whatever you want to call them. I do know, however, that they are giving the banks money in the hopes that those banks will then give the money to others. But see, the banks won’t give the money to people, they will lend it. And then they will charge interest on that loan, thereby making money again and again screwing over the people they lent to in the first place. Then we’ll be right back where we are. See, cycles.
There is no way to break an economical cycle, they are as much a fact of life as dying, but we should maybe start thinking about ways to change the cycle, so that we don’t face a depression/recession every thirty years or so. First and foremost would be getting people jobs. Well paying jobs and not so well paying jobs, but jobs nonetheless. But how can we create jobs without money? It’s hard, and I have no real answer to that question. I will say this, though, there are thousands of jobs that are outsourced to different countries and the people in those countries. Maybe if we kept those jobs within our borders, our unemployment rate would not be the highest its been in 8 years. Maybe I’m wrong, but it makes some sense to me.
This whole thing is a mess, and it is true that we will recover. But again the question is WHEN? Oh, and For How Long? That’s two questions.