Monday, March 10, 2008

The Economy Sinks, Blame Bush (update)

Hey, why not. It's worked on everything else. First Senator Obama gives it a try all last week on the campaign trail ... but on Late Edition with the Wolf Man ... Senator Kyle brings much needed perspective.

One thing to note here. President Bush, The Fed, and this crazy "absolutely do nothing" Congress can screw this up. Overstimulation, by either Congress or the Fed, will do nothing more than add to inflation and do little to create or preserve jobs. Instead of giving back money, and artificially lowering interest rates (while the pressure is in the other direction) Congress should consider another round of tax cuts, allowing consumers to keep their cash ... and allow interest rates to rise (naturally) before the dollar is put on the cardboard standard.

This is primarily a financial crisis that has bled into the general economy, not a traditional economic downturn led by a decline in consumption first and production second. In this scenario, you don't do anyone any good by making it cheaper to borrow money, increasing their debt and then sending them checks to pay off that debt. Geeze ... didn't anyone inside the beltway attend even one economics class?