Is the US economy in trouble? If it is how long will the crisis last? Will the elected representatives and traditional news media tell the American people the truth or hide the true facts? These are all the questions the American public wants answered and has the right to know.
Unfortunately, it is not being discussed openly and reported upon in the media in a transparent manner. The media conglomerates are parts of huge publicly traded companies whose sole purpose is to increase stock value for their shareholders. So if they start reporting on the true State of the American Economy, than the investors will start selling shares thus, pulling their money out of the market.
Herein, the stock value of many publicly traded companies (including the media companies) will decline. Of course that can’t happen hence, you find useless dribble like this being reported in the mainstream press and publications, such as the BusinessWeek article The Economy: Five Signposts to Recovery.
And of course our elected representatives aren’t being honest with us because they want us to spend money instead of saving money. The best example of this is the nonsensical policy of the Bush Economic Stimulus Package. Instead of telling people to save money for the future, our president and Congress in their wisdom want us to shop, hoping that mass consumerism will be an economic stimulant.
Unbelievable, isn’t it that the government and media are encouraging people to spend the tax rebate money instead of saving it or paying off debt. The current economic mess our nation is in is due to the irresponsible policies of President Bush, Congress, the Federal Reserve Bank, and Wall Street. The subprime mortgage crisis was mainly the result of Alan Greenspan’s Fed policies, Fed not holding Wall Street accountable, greedy Wall Street, the home builders, the mortgage lenders, and mortgage bankers.
The Fed is still afraid to penalize Wall Street for their role in the subprime mortgage meltdown. Wall Street can take all the asymmetric risk that it wants because it knows the Fed will come bail them out by injecting liquidity into the market. For example, the Fed injected $17.25 billion in August 2007 and $31.25 billion in September 2007 into the market to keep credit markets from drying up. Basically, the market can take all the risk it wants without fear of a downside because it knows that the Fed will come to its rescue.
The American economy needs to be rescued but the elected representatives guiding our policies and economy shouldn’t lay the onus upon the American people to bail the economy out, why should Americans bear the burden for misguided policies they had nothing to do with, in consultation nor implementation. If you really think about the true purpose of this new Economic Stimulus Package, Bush, Congress, and Wall Street want Americans to spend money, hoping to have a domino effect within the economy as new money gets pumped into it. So if you truly think about it THEY EXPECT THE AMERICAN PEOPLE TO BAIL OUT THE ECONOMY AND THEIR FAILED POLICIES. It is amazing to me when the people we entrust to look out for our interest, our elected representative tell us to go SHOPPING, instead of saving.