To: Knighty Tin who wrote (116925 ) 11/14/2008 11:09:32 PM From: Bilow Read Replies (2) | Respond to of 132070 Hi KnightyTin; Re: "1. Cut taxes. 2. Kill Saddam Hussein. And it was those two factors that helped bring the financial system to its knees. " I thought the guy was an idiot and railed about the Iraq invasion for years here, but it's obvious to me that the economic system was headed for a fall back in 1986. The sad truth is that the Capitalist System has had a series of booms and busts that goes back 400 years. Only dead economies don't go through busts. They stay bust forever. And for Bush's war and tax policies to cause problems for the US is reasonable, even logical. But how could the actions of Bush destroy the financial system of Iceland, which did not join the war on terror, at least not that I'm aware, and certainly isn't ruled by US tax policies? And just as obvious as this bust was to me 20 years ago (if anything I was surprised at how long it lasted), it is also obvious to me is that the system is now headed for another boom (though we could have some substantial room to the downside before then). And after that, another bust. Get used to it, it's been going on for hundreds of years. The business cycle is driven by investor insanity not by the government. It happens no matter what government policy is, hence the universal world-wide nature of the resulting fiasco. Sure the government could "theoretically" do something to cause the bust to happen earlier, but if they did, the result would be that people like you would blame them for causing the bust and vote them out of office for it. Their quite rational and universal response is to postpone the day of reckoning as long as possible. And it's not the government's fault, it's the people that cause this. The people complain bitterly when the government does anything to stop the party. I just hope that this one isn't as bad as the Great Depression and the cure for a bad economy that the folks came up with in 1938 doesn't revisit us now. Nothing like global full scale war to get the economy rolling again. Instead, I suggest we do something equally silly but without all the destruction. I guess saving the US from oil imports would fill the bill. Stopping CO2 would be economically destructive and politically iffy (not to mention unnecessary). Another government spending program would be racing China to put a colony on Mars.