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Politics : GOPwinger Lies/Distortions/Omissions/Perversions of Truth -- Ignore unavailable to you. Want to Upgrade?

To: HPilot who wrote (116641)	3/5/2008 5:18:57 PM
From: TigerPaw	Read Replies (1) \| Respond to of 173976

There was an economic boom in the 1990s because the country was not borrowing huge sums of additional money. Government borrowing competes with private borrowing and the government wins because it can print the money to pay it back if necessary. Bush Jr. reduced revenues and borrowed so much that there was little credit left over for the private sector. That made the economy suffer, so with Greenspan's help they lowered interest rates to a giveaway level below actual cost. This means the government was in effect giving away free money to banks so long as they would loan it out. This made the economy appear to no longer suffer from the debt competition. The chickens came home to roost. TP