The past few days have been pretty crazy as far as the economy is concerned. We saw the collapse of the financial powerhouse Bear Stearns and then the quick action by the Federal Reserve over the weekend.
What are we to make of all of this? The Democrats are blaming it all on Bush, as usual. They keep forgetting that the economy was doing just fine before they took control of the Senate and the House. So now they are screaming and whining for the President to do more. They want more tax payer dollars pumped into more government programs. Hillary wants moratoriums on foreclosures and freezes on interest rates. Obama is talking about government refinancing of loans. Nothing like shifting all of the risk to the taxpayers.
I'm certainly not an economist. But history shows that the economy has its ups and downs. Whenever you see a bubble that keeps getting bigger you have to expect that sooner or later it's going to burst. We saw it with the "dot.coms" and now we're seeing it with the real estate market. Eventually there has to be some sort of correction.
On Sunday Alan Greenspan wrote:
"In the current crisis, as in past crises, we can learn much, and policy in the future will be informed by these lessons. But we cannot hope to anticipate the specifics of future crises with any degree of confidence. Thus it is important, indeed crucial, that any reforms in, and adjustments to, the structure of markets and regulation not inhibit our most reliable and effective safeguards against cumulative economic failure: market flexibility and open competion."
That sounds like good advise to me. Who do you most trust when it comes to the economy - liberal democrats or conservative republicans?