Busted: Bankers and The Global Economy

March 16, 2008

Bush Says Economy in Rough Patch

Filed under: federal reserve, money — Tags: , , , , , , — digitaleconomy @ 12:00 am

It is a “no-brainer”, but sooner or later, our venerable President Bush had to hint at what he is really facing in the economy. He spoke his mind on March 14 as Bear Stearns was dealing with overcoming the terror of eminent failure. President Bush acknowledged that the economy was in “a rough patch” but that acting too aggressively could have “far-reaching and unintended consequences.” The “acting too aggressively” pearl-of-wisdom originates from the Federal Reserve. The “acting too aggressively” quote has been taken out of context so much, it has become the watch word of the season. President Bush has basically designed a double excuse. Too little action and the U.S. is in trouble. Too much action and the U.S. has far-reaching and unintended consequences which is also trouble. Could Mr. Bush’s $170 billion economic stimulus plan using all the available funding credit available when the stimulus plan was designed actually work? “I believe we are a resilient economy,” he said.

unclesam.jpgBased on recent Federal Reserve action and upcoming expected failures, Uncle Sam is automatically becoming his own banker as monetary failure in banking and mortgage finance is covered by the Fed and the U.S. taxpayer, creating an ever-increasing national debt. The situation is so tumultuous that the national debt seems to be the last thing anyone would think of.

Bush finished his remarks by stressing the importance of leaving U.S. markets open to overseas trade and capital, saying that not doing so would harm the economic future of the country. “It is dangerous for a country to be isolationist and protectionist,” Bush said.

It would seem that as long as trade deficits don’t continue to cost U.S. taxpayers money, leaving trade open would be the thing to do.


1 Comment

  1. Hi,
    Sign on bank: The fish only knows that it lives in the water, after it is already on the river bank. Without our awareness of another world out there, it would never occur to us to change.

    Comment by Bank charges — March 16, 2008 @ 10:30 am

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