To: SteveAustin
The low rates have been good medicine, but now the effect is starting to wear out.Not good medicine at all. The artificially low interest rates have managed to obscure and exacerbate underlying economic problems while prviding temporary and illusionary feel good doses of consumerism to the public. It has turned into a full blown ponzi scheme with ever increasing amounts of quick fix borrow and spending to keep it looking good and the public placated. Meantime, manufacturing jobs and real productive activity is leaving town. Misguided and irresponsible bubble economics that can only end badly.
Richard W.
34 posted on
10/18/2003 3:38:17 PM PDT by
arete
(Greenspan is a ruling class elitist and closet socialist who is destroying the economy)
To: arete
I don't really disagree with you, but as Keynes said, in the long-run we are all dead. So juicing the economy via the rates probably delayed the inevitable, but at least it kept things humming for 3-4 more years.
I don't think things will collapse, but I could see a 1978-1982 period of high rates and high unemployment until we reinstate fiscal discipline and work through the Chinese and Indian cheap labor situations.
To: arete
"Meantime, manufacturing jobs and real productive activity is leaving town."
The only industry in my immediate area which is hiring for expansion is a paper cup plant. This is certainly better than a layoff, but what does it say when furniture manufacturers etc. close down while the paper cup business is booming?
111 posted on
10/29/2003 7:20:05 AM PST by
RipSawyer
(Mercy on a pore boy lemme have a dollar bill!)
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