Tejek, what he's saying is that this recovery was built on the following things, none of which is sustainable:
* US gov't socializing private losses, through purchases of bank toxic assets and giving unlimited loans and guarantees on those toxic assets (non performing loans)
* massive quantitative easing (money printing)
* zero percent interest rates to recapitalize banks at tax payer expense
* massive recovery act that acts like heroin for the heroin addict, but doesn't solve any long term problems
* and a host of fake, inorganic growth stimulus items like cash for clunkers, housing credits, welfare checks, etc
Again, all of that was accomplished by either borrowing from China or outright printing of money, and none of that is sustainable. Not only that, but it managed to pull forward demand to make today seem less painful, while making darned sure the future is bleaker than ever before.
I can't stress this enough. Keynesianism as practiced by Bernanke, Geithner, Obama, and the Dems is absolutely, hideously wrongheaded and damaging to this country's long term economic viability.
I don't mind borrowing from the future, if we can invest that money and get a greater return than the cost of the capital (interest we're paying). However, that is not what this Congress, this Fed, and this Administration has done. That is what has Americans so fed up. It's been completely fiscally irresponsible. |
