Daily411: This week's lowlight

Sunday, January 20, 2008

Headline: Deep problems plague U.S. economy, stimulus plans notwithstanding.

'Nuf said.

For those keeping track, the Inauguration is a year away.

Drift said...: I fear the problems facing the stock market and the problems facing the economy are not the same thing and probably can’t be cured with the same medicine (although the fed seems clearly more focused on treating the market). Debt and spending are only effective antidotes to a down turn if you managed to build some reserve during the up-side of the business cycle to use during it’s downturn. If you are neck deep in debt making debt more attractive (by cutting the fed funds rate) or assuming more debt to distribute checks (tax rebates) are like that bloody marry I had on Sunday morning… it sure felt good, but really only pushed my hangover back a bit and perhaps made it worse in the long run. Treating the national epidemic of insolvency as if it were simply a lack of liquidity is like giving a cancer patient a shot of penicillin. Perhaps a meaningful market capitulation would have been better medicine for us all in the long run.; Tuesday, January 22, 2008 11:38:00 AM

Daily411