The Economy

I'm not sure I'm ready to tackle something as big as this issue, yet. Too much going on with too many entangled pieces. But here are a few thoughts (oversimplifications, really):

• There is plenty of blame to go around on this one. I find it mildly amusing when the parties point fingers at each other on the economy. At this point I don't know who is worse, the tax-and-spend Democrats or the cut-taxes-and-spend Republicans. Probably the Republicans. At least the Democrats are being true to who they are; you knew what you were getting when you voted for them. The Republicans seem to have lost their sense of direction and identity. They are as close to losing all relevance as the Democrats were a few years ago. Don't worry. If there is one thing I have confidence in it is the political parties' ability to give their opponents back their relevancy by being stupid.
  
• The government supporting Lehman, or at least supporting a buyer, would probably have been a cheaper move in the long run. The credit markets might not have frozen and there would possibly be less need for "stimulus." Remember, the markets froze because banks lost confidence that other banks would be around the next day to repay their overnight loans. If you can't rely on a bank to repay their loans, how can you rely on the average person?
  
• The stimulus bill will not end the economic problems. There is too much pointless spending and not enough stimulus. The lesson we SHOULD have learned from the Great Depression is that you can't spend yourself out of a recession . . . you can't borrow yourself out of debt. So much for new ideas!
  
• Positive economic news has started popping up (January and February numbers). This means that, if the recovery has started (fingers crossed), it started before one cent of "stimulus" money was spent. Is it because the Bush administration did something right? Is it because Obama's election gave people enough hope to get out there and spend? Or is it because these things happen in pretty regular cycles? I think it is likely a combination of the last two. Certainly the Bush Administration can't be credited with too many correct moves.
• If the recovery has started on its own, that makes the stimulus package more worrying, in my opinion. Do you think the politicians are going to forgo their earmarks and pet projects just because the "stimulus" isn't needed anymore?
  
• Worrying about $165 million in bonuses out of the BILLIONS that are being thrown at AIG is a straw man meant to distract you from the other things the government is trying to do . . . or should be doing, but haven't got a clue on how to do it (re: unfreezing credit markets and stimulating the economy). Oh, and the bonuses were not bad things. They were paid out to people who worked to keep the company from collapsing. Read one person's perspective here. They worked hard for that money. Not just during this crisis, but all their lives to get to where they are.
  
• A hint for Congress, punitive taxation is not a good thing. It does not set a good precedent. Oh, and let's talk about those new cars you all just voted for yourselves in the "stimulus" package.
• I think Ayn Rand's "Atlas Shrugged" should be required reading for anyone elected to office.

OK, so this ended up being more of a rant than I intended. More thoughtful and well-researched post next time. I promise.

Unless I get mad again.