Friday, January 25, 2008

Subprime Crisis and Recession Fears in the USA, circa 2008

George W Bush (President), Henry Paulson (Secretary of Treasury), and Nancy Pelosi (House Speaker).

The three announced a quick (very quick) agreement on the USD150 Billion to prime the US economy and prevent a slide into recession.

The three said the same thing: to put the money directly into the hands of the consumers who, they are encouraging to spend, Spend, SPEND!


Most Economists all over the blue planet, third rock from the Sun, A.K.A. Earth agrees that one of the problem of the US economy is just that: consumers spending WAY too much.

Yet, the leader of the largest economy on planet Earth (for how long?, we wonder aloud) advises the opposite.

True, their rationale is valid in short run but in the long run...