What Happens Next? (Economy) ~ Random Waves of Insight
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Tuesday, March 18, 2008

What Happens Next? (Economy)

I feel like the government is playing Jenga with our economy. "Let's see if this will work. Ooh, it's shaking. Better try this... Ok, steady..." It's creepy to think that no one is coming forward with a solid solution. Really, it seems like we're just trying stuff and hoping things turn out all right.

I'm wondering how much the Rate Cuts will pay off. Could we lower the rate too much? What would an economic "overcorrection" look like? Bush said when you overcorrect, you end up in the ditch. I know how that makes sense when you're driving. But if we overstimulate the economy, what would happen? Would that mean that the legitimate means of "fixing things" would be used even less, since the "artificial" stimulation would be producing fake results? And then when that stimulation ends, what happens? Does the real solution come limping back? Or is it gone for good?

I heard our economy is now or will soon be about as bad as it was post-WWII.

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