The actions of the Federal Reserve after the collapse of Bear Stearns earned praise from politicians on both sides of the aisle. That makes me suspicious. Unlike Congress the Fed can move swiftly in times of economic crisis in order to avoid further economic adversity. They did their job last week and the markets responded positively.
This article by Rich Lowry at Townhall.com does a pretty good job of summing up the current economic situation. This is one of many articles that I've read on the subject and many of them are more alarming than this one.
The only analogy I can draw here is that of putting a bandage on a wound that hasn't been cleaned. Sure, the bleeding stops but underneath there is an infection festering that could compromise the entire system. Would it be better to endure the temporary pain of cleaning the wound and giving it time to heal?
I certainly don't trust any of the Democrats when it comes to the economy. But to be quite honest I don't know if the Republicans are much better. Letting the market correct itself naturally may be slightly painful in the short term but healthy in the long term. I have a feeling that no politician is willing to go out on that limb.
Must Reads of the Day
The Obama's aren't as generous as they would lead us to believe. They're tax returns were released. Read more here.
The economy is the biggest election issue. I'm not the only one who thinks John McCain should choose Mitt Romney as his running mate.
My opinion of John McCain went up when I found out that Hugo Chavez doesn't like him.
Speaking of Hugo Chavez, let's not forget what's happending south of the border.
John McCain picked up a big endorsement from Nancy Reagan today. (But I still want him to choose Romney as his running mate.)