Was Obama wrong (again) ...

Discussion in 'Economics' started by 426653478, May 6, 2009.

  1. ... when he said it will get worse before it gets better, and that instead he should have said; it will get better before it gets worse?!
  2. Might get worse before it gets worse.
  3. In a sense, it will get better.

    1. Banks lending more now [to qualified borrowers] because the government gave them some money to lend and told them they "don't have count" their lousy assets which were encumbering their capital.

    2. The stimulus and other monies the government gave out will work their way into goods, services, and the markets..... and of course all of this is eventually inflationary.

    So... things will "appear" better on the surface as we focus "only on the surface" and basically ignore the increased debt-load taken on. Basically, the government is now doing on steroids what they have always done and what we consumers did to get into this trouble.... "borrow [excessively] and spend".

    As for the economy REALLY getting better, no. Not any time soon.

    What is necessary to REALLY get the economy going again are policies which favor "capital formation" in the US and policies which would attract capital from foreign sources.... so that capital could be deployed and employ American workers. Sadly, none of this is on the Obama agenda.