Bailouts, Debt Magnify Risk of Future Economic Troubles

Discussion in 'Money Talk$' started by KenH, Sep 24, 2009.

  1. KenH

    KenH
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    Bailouts, Debt Magnify Risk of Future Economic Troubles

    by Johan Norberg

    The talk now is about "green shoots" and a "light at the end of the tunnel." Markets have rallied, housing prices have stopped falling, banks are profitable again, and it seems like we have been able to save several industrial giants that were on the ropes, like General Motors.

    But we must never forget that the light at the end of the tunnel can be an approaching train.

    All of these presumably positive signs could also be interpreted as problems. They might contribute to a slower rebound than expected, and possibly to a new crisis further down the road.

    It is counterintuitive, but the fundamental economic problem was not the "bust"— it was the "boom," under which too much wealth was put to inefficient use.

    - more at www.cato.org/pub_display.php?pub_id=10571
     
  2. billwald

    billwald
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    I think for the near future the economy will stablize aroung 15% unemployment.
     
  3. ReformedBaptist

    ReformedBaptist
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    When we see credit flowing and jobs, then we know we are on an economic recovery.
     

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