Economic booms

December 3, 2008 at 5:15 am | Posted in Uncategorized | Leave a comment

Contrary to what most people think, the problem with the economy isn’t the recession. The problem in the economy is the artificial boom/bubble the federal reserve has created. People have it backwards.

Think of loose monetary policy and low interest rates as a kind of artificial high, not unlike a heroin fix. Sure, it feels great today, but there are economic repercussions in the system in the long term. That’s largely because it’s artificially introduced from the outside. If you want to get healthy again, like it or not, you have to just quit “the fix” cold turkey. Sure, it’s very painful, but sometimes good medicine tastes bad. It’s the only way to get these toxins out of the body and be healthy. So a recession isn’t a problem, it’s the solution.

I just wish politicians would just let these so-called “toxic assets” to be realized and written off the books, and not be bought out. They should be purged from the system.

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