Monday, October 13, 2008
Economic Crisis
So, here we are, in an economic "crisis". Our stock markets fall by record breaking amounts over a period of a eight days. Then, one day, after some "good news", our stocks rebound by one of the highest percentages EVER. Now CNN is reporting that economists think that the worst is over. SERIOUSLY?? Is someone pulling my leg here? There was crisis? Call me crazy, but apparently someone was holding the magic wand and now things are looking up again. I just don't understand how there can be that much volatility in a "stable" economy. Granted, I am NO expert, but this all seems a little bogus to me. We're up one day, then we spiral down, just to shoot up again. Any good conspiracy theories?
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Hey Britney, I am totally with you on this one. I think that our congress is a bit too quick to make decisions. Personally, I think that the market should have been allowed to crash so that there is some form of a "check" for corporations. For example, it doesn't work (in my mind) to stay out of a corporation's way and let it do whatever it wants and then bail it out when it gets itself into trouble. If we aren't going to regulate corporations, then we need to allow them to fail when they do silly things with their assets (otherwise they do not learn from their mistakes and the market can't adjust itself). Or, in the alternative, we need to regulate them in the future more carefully--under such circumstances a bail out may then be justified.
ReplyDeleteDitto. How about this to make you mad? http://www.foxbusiness.com/story/markets/industries/finance/aig-executives-blow--getting-bailout/
ReplyDeleteUrrg. I read something that said in 1921 there was a bit of a crisis, and the market was allowed to work itself out and things were fine within a year. When the market crashed in 1929 (or was it 1930? clearly I'm no expert either!), the government pumped a bunch of money in and Voila! Decade-long depression! I think we need[ed] to let it do its thing.
Yeah, it's crazy! I've stopped watching the stock market so closely because its just out of wack. Up and down... I just figure that as long as I prepare my family (as far as food storage and whatnot) we will be fine with however long this mess is going to take to smooth over. Kinda a bummer that we, as the next generation, are going to be stuck trying to get out of this mess.
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