Wednesday, January 14, 2009

Update the repair manual!

This economy has been great for experts.So much to debate about on the proper way to fix things.However,unconventional economic issues cause them to throw out the normal models of solutions.For example,the debate over monetary or fiscal stimulus.Those who normally argue for the Fed to step in because they work quick and politically unhindered have an X factor.This type of policy is targeted for consumers and other end of the line users.Yet,the banks are using the low interest rates for their own benefit and not passing it on as usual negating it's effect.

The market that is thriving is re-finance which doesn't address the people in foreclosure,only good credit homeowners improving their rate.These types of results are ruining the theory of just throwing money at a problem until it goes away.They may have to actually solve it.Lame issues of high Federal debt and the interest,consumer debt and no savings,and reducing taxes without the accompanying spending reductions are boring,I guess.Just think of all the bloggers,expert opinions,editorials,etc. that would become irrelevant if they economy just hummed along smoothly.Drama is much better!More to come...

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