Scumbria,
It is truly amazing how the Fed ruined the economy.
What? You know we don't agree on this issue. You want to open battle on another front? ;~))
They kept pushing and pushing to stop an inflation threat which did not exist, and managed to lose the baby with their imagined bathwater.
Maybe the feds did push too hard by a half basis point....time will tell....but there was no question that the economy was racing, oil was spiking up and worse, employee benefits were starting to go up fast while component shortages were popping up everywhere.
However, just as economists underestimated how fast the economy was racing in the first half of last year, I think they are overestimating how bad things are now. The level of negativity is amazing given where we have been in the very recent past. It doesn't help when you have a new president beating the war drums for recession with all the kings' men/economists standing behind those drums. Larry Kudlow, a regular on CNBC and a staunch Republican, has been saying we were going into recession for 3 years....now all he talks about is Bush's tax cut....he's a major, pompous *sshole who'd rather that everyone ate cake.
In addition, I believe that the economy "turned off" so fast because of the computerization of inventory monitors[discussed in the article I posted last night], enabling companies to cut off the inventory flow quickly. Added to that, the component shortage caused companies to hoard, exascerbating the turnoff of demand when it came. But I also think that computerization will allow companies to turn on the flow just as quickly. There could well be a turnaround that is just as fast in the near term future.
They did succeed in putting an imbecile President in the White House, however.
I don't think Bush's winning had much to do with the economy at all. First, he didn't get into the WH fairly....he had to steal the election. Secondly, Gore was for many too much of an intellectual/visionary. As unbelievable as this sounds, Bush is seen as everyman while Gore is not one to be trusted. This country tends to be conservative, simple and provincial in its political views....ask any European, they know that and have known it for years but you knew that as well.
Clinton was a fluke....a Rhodes scholar with a commoner's touch because of his upbringing. Unfortunately, he became too complicated for the American public with his off beat sexual tastes and the growing perception that he was a lech...its cool and acceptable in his profession to be the dashing ladies' man but not when you harass. And so we got an idiot and his father for president encore...the second term of GB senior.
But the stupid always screw things up...they should never be allowed to be in charge...and I am banking on it taking dubya and big daddy only 4 years to mess everything up. Its annoying but its the way things are in this country.
ted |
