Quote:
Originally posted by Moneyguy1
No one on this bb saw how close the systemwas to collapse after 9/11.....
I disagree. When the advice from Washington was "business as usual...go out and buy", the red flags went up, at least in my little corner of the world. The downward economic spiral began at that point.
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Money your right on, except your conclusion is off....
"go out and buy" means SPEND MONEY AND KEEP THE CASH FLOWING....and the Fed helped by lowering interest rates to 1% and GM to 0% on their cars. After 3 years the Fed reversed course because they felt that the US had gotten over the trauma of 911 and the economy was back on course....and with 4.6% unemployment that is hard to argue with. Now the Fed is trying to moderate inflation due to too much Liquidity in the system.
Actualily at this point in time the Government is taking in more money than they are spending.