Outlook for Economic Growth

October 7, 2008

“The outlook for economic growth has worsened,” Bernanke said today just days after a $750,000,000,000 bailout bill was passed to get our economic mojo back. We were told we had to do this now or the sky was going to fall, markets were going to tank and the only thing we were going to own was the shirt that was on our backs! Well, now markets are still free-falling, nothing is better and we’re stuck with paying out the nose for this “Rescue Plan”.  I know that constituencies have to be put in order and just because the Bill has been passed doesn’t mean that things will start immediately but the Bill didn’t impress the markets one bit. We must look at it from this angle that the end of the world didn’t come last Friday. We are still here today buzzing by the drive-through of Starbucks paying for our double mocha latte. So why in the world didn’t Congress, after the initial bill failed, revise this thing or scrap it altogether? Why not refinance all these toxic loans, count our losses and let the markets adjust? “NO, WE CAN’T DO THAT,” the gainsayers will shout “we will loose millions if not billions of dollars if we did that!” Well something is better than the mess we are in now. The current news is that the problems that are in our lap are now in the laps of the Europeans and others around the world. With all of this we have a foreseeable future with a man in the White House that wants to tax us heavily (don’t believe for a minute the whole raising taxes on only 5% of Americans thing) and meet with dictators who want to wipe our very existence off the pages of history. If you are not a religious person it should even drive you to pray for the quagmire we could possibly be entering into.