All The News That Fits

Some Perspectives on the Economic Crisis

Posted by Nancy on January 25, 2009

From Doug Ross:

The scariest chart ever 

East Coast Economics is currently doing some research on the (likely) Treasury bubble, and the charts I’m coming across are nothing but scary – one more so than the other. Check out the following which shows the [dollar] amount borrowed by US banks from the Fed through Dec 2007; the spike marks the Savings & Loan Crisis at the end of the 1980s with borrowing maxing out at $8b…”

1919-2007 (Y-axis scales to $10B)

“Now take a look at the following chart. It is the same graph as above, but updated through the beginning of November ‘08.”

1919-2008(Y-axis now scales to $800B)

Read the whole article, if you’re brave.

As bad as the economy and borrowing from the fed are, it may well get worse.  Many economists expect Obama’s stimulus plan to be a drag on the economy instead.  It will take money out of the private sector for use by the government, and apparently use it according to race, gender,  and socioeconomic status.

 I don’t think any hopey changey stuff is coming my way. In fact, as a local politician the speculation among my peers is that the proposed economic stimulus package will more likely make providing services to our communities more difficult.

One final quote, this from Rush Limbaugh response to National Review:

Obama’s plan would buy votes for the Democrat Party, in the same way FDR’s New Deal established majority power for 50 years of Democrat rule, and it would also simultaneously seriously damage any hope of future tax cuts.  It would allow a majority of American voters to guarantee no taxes for themselves going forward.  It would burden the private sector and put the public sector in permanent and firm control of the economy. Put simply, I believe his stimulus is aimed at re-establishing “eternal” power for the Democrat Party rather than stimulating the economy because anyone with a brain knows this is NOT how you stimulate the economy.  [emphasis added]

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One Response to “Some Perspectives on the Economic Crisis”

  1. AprilMay said

    Great. Now I’m going to have nightmares about that chart. Grrrrreat.

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