Good, factual analysis and you’re right, let the free market correct itself. But that is NOT what is occuring. The Fed is bailing out the Central Banks (or trying to) but the banks are just sitting on their cash reserves to clean up their balance sheets and not lending to even credit-worth consumers. I know I am one of them but the bank won’t help increase my line of credit to expand the business until I have plenty of cash reserves (then of course I won’t need them).
Investors are cramming their dollars into commodities, the only safe investment these days, but the side effect is hyper-inflation of food and energy, further eroding consumer confidence and the middle class.
The U.S. economy is a service driven economy, 80% of it now in fact. I have owned businesses so let me ask you, what happens to middle men in a recession? Now think globally. The world is shedding their middle men, that’s US!!!
Any government assistance to the free market should all be poured into education, job creation and energy independance. But who and where does the Fed and Gov bail out? The vastly irresponsible portions of our country. In 4-5 years the broke middle class will vote in new, accountable leadership and if they can’t, I wouldn’t be a bit surprised to see a revolution with 2-3 million people overruning the White House and overthrowing the government.
They'll be stopped by the "special status" immigrants from Mexico, imported by the elites to keep their own enclaves going, in the event of monetary collapse.
Besides, the problem is Congress, and more specifically, the Senate.
What useful thing has *any* U.S. Senator currently in office done with any part of their lives? (...and I explicitly include John McCain on that list.)
Cheers!