Busted: Bankers and The Global Economy

December 1, 2008

It’s Academic: U.S. Recession

banking-house-of-cards-1For those that needed affirmation, the U.S. has been officially in a recession since December 2007. The Republican’s greatest political fears have finally been clarified by economic academic definitions.

Now that recession is officially here, what are we going to do about it? “It is clearly not going to end in a few months,” noted Jeffrey Frankel, a Harvard economist with the National Bureau of Economic Research. “We would be lucky to get done with it in the middle of next year.”

The White House says, “The most important things we can do for the economy right now are to return the financial and credit markets to normal.” If you’ve been watching the news on television, one idea continues to surface: the best ideas that politicians can come up is to somehow continue the obscene use of endless credit, especially where the American public is concerned. They haven’t awakened to the reality of the need for cost adjustments in the economy that simply make living more affordable and realistic. Instead, we cling to same ideals that brought the nation exactly where it is. However, the fact remains that economic price adjustments are already in process and will continue to work their economic magic whether politicians or economists like the news or not. We are in for another 5 quarters of economic contraction at a minimum along with concordant price adjustments. Business will suffer. Government will “suffer.” Americans will suffer.

Then, on the other hand, many more millions of Americans will also continue to prosper or at the very least, get by. Soon enough, the recession will be past if politics doesn’t keep trying to prolong the cycle by circumventing pain. Evaluating what really put us here beyond crooked banking is exactly what needs to happen. If you read this blog, you have a clue what this is. Otherwise, America hasn’t learned a thing. What do you think? ~ E. Manning


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