Comments on: It’s the Stupid Economy http://theconservativereader.com/2008/02/13/its-the-stupid-economy/ Energizing The Movement Fri, 26 Feb 2010 03:12:47 -0700 http://wordpress.org/?v=2.8.2 hourly 1 By: danderoo http://theconservativereader.com/2008/02/13/its-the-stupid-economy/comment-page-1/#comment-34 danderoo Thu, 14 Feb 2008 17:25:00 +0000 http://conservativereader.net/wordpress/2008/02/13/its-the-stupid-economy/#comment-34 I'm not a professional economist either, and we can all make analytical assessments of whether the government should do this or that or whatever under any given scenario of which we know less than they do because we just don't have the information. I laugh when I see someone criticizing Greenspan or Bernanke because obviously they're smarter and would know better than they about how to be the most powerful Central Banker in the world. The reality is that if they were that smart, then they would be the Chairman of the Fed instead. Having said this, a little fiscal stimulus coupled with monetary stimulus won't kill us and may in fact avert economic disaster. The real issue is inappropriate government spending. It would be easy to balance the federal budget--just get rid of the Education Department! The side benefit is better schools and better-educated kids. As far as interest rates are concerned, it is better to have artificially low interest rates and allow ailing banks to heal than it is to rescue a bank the size of Citigroup, which WOULD be a disaster of global economic proportions. It's very difficult for me to criticize people that have more information than I do. My guess is that I'd do the same thing if I had the same data. Getting back to the stock market and retail sales--if you're investing in the market and hoping to time it and get rich on a day-to-day basis, then you deserve to have your clock cleaned. On the other hand, if you're investing because asset prices are artificially low and you have a long-term perspective, then chances are you'll do very well. Just my two cents... I’m not a professional economist either, and we can all make analytical assessments of whether the government should do this or that or whatever under any given scenario of which we know less than they do because we just don’t have the information. I laugh when I see someone criticizing Greenspan or Bernanke because obviously they’re smarter and would know better than they about how to be the most powerful Central Banker in the world. The reality is that if they were that smart, then they would be the Chairman of the Fed instead.

Having said this, a little fiscal stimulus coupled with monetary stimulus won’t kill us and may in fact avert economic disaster. The real issue is inappropriate government spending. It would be easy to balance the federal budget–just get rid of the Education Department! The side benefit is better schools and better-educated kids. As far as interest rates are concerned, it is better to have artificially low interest rates and allow ailing banks to heal than it is to rescue a bank the size of Citigroup, which WOULD be a disaster of global economic proportions.

It’s very difficult for me to criticize people that have more information than I do. My guess is that I’d do the same thing if I had the same data. Getting back to the stock market and retail sales–if you’re investing in the market and hoping to time it and get rich on a day-to-day basis, then you deserve to have your clock cleaned. On the other hand, if you’re investing because asset prices are artificially low and you have a long-term perspective, then chances are you’ll do very well.

Just my two cents…

]]>