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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: mt_mike who wrote (17760)	4/22/2003 2:08:22 PM
From: Jim Willie CB	Read Replies (1) \| Respond to of 89467

probably biggest bad pill swallowed nowadays is "low rates" in times of expansion, low rates are stimulative demand has been pentup, then bursts with low rate incentive in times of contraction, low rates accelerate the contraction this is horribly misunderstood, addressing directly the incompetence of today's economists twice as much interest income is gathered, compared to interest payments made therefore, in this environment, low rates slow down the economy even further, as less money is in people's pockets, and as fewer people and far fewer businesses are willing to take on new debt the cross currents out there are mindboggling feds issuing a stimulus package, with lower taxes states increasing sales taxes locals increasing property taxes low rates slow down the economy, as described bankruptcies slow down the economy, from lost jobs available refi cashouts stimulate the economy higher energy costs cut into business profits and spending higher energy costs cut into household spending budgets THIS IS A SCHIZOPHRENIC ECONOMY with all the cross currents, I conclude that all the stimulation cancels out the drags and we go into recession slowly, very slowly but the recession will feed upon itself the only saving feature is a few months of semi-tepid economic activity from the big federal stimulus package but Democrats will water it down heavily I predicted in January that the package would be watered down so far it has been just that, with dividend reform gone Democrats dont want the stimulus to succeed before Nov 2004 this country is so so so fuched up we have whores on the left (Dems) and morons on the right (economists advising Repubs) I expect mostly nothing to get done par for the course in that Eden of Fools (Congress) / jim