Washington’s massive spending stimulus and money-supply expansion have staved off the feared collapse into depression. But unemployment has continued to rise, and the economy has not really revived. Americans, who’d been encouraged by their fiscal and monetary guardians for over a decade not to save anything, but to binge on unaffordable housing and non-essential goods whose production had been outsourced to China and Japan, have rediscovered the virtues of savings. Banks, heavy-laden with the taxpayers’ money, are still too shell-shocked to lend, and the public is too shaken to spend. Personal and corporate loans are being sensibly paid down, to a large extent with money created for the occasion by the Federal Reserve.
1 comment:
Conrad Black ranting about the evils of extravagance. This man has creditability? One reason the world is in difficulty is that people are "respected" by their appearances and what they say and not what they do.
Post a Comment