Although neocons will try to tell us that the fundamentals are solid. NOT! Anytime we have huge banks investing in hundreds of thousands of questionable loans, how is that sound? Then instead of looking into the investment, other investment groups that are either too lazy or too greedy to actually study what they are getting, will buy chunks of these sub-prime mortgages. So, Merrill Lynch, Countrywide and Citigroup are just a couple of well known institutions which are now taking a bath.
Let’s look at other data. Americans aren’t saving. How can they? Nothing is built to last except Craftsmen tools. Not cars and certainly not cellphones. Median income has been stagnant under Bush therefore it is no surprise that no one has any money to save.
Alan Greenspan Ben Bernanke testified on capital hill today that a stimulus package needs to be put in place pretty quickly. Wasn’t this the guy who was telling us just a couple of months ago that everything was hunky dory? I’m just askin’??
Update: I forgot to mention that the stock market tanked today.
United for urgent action, the White House and Congress raced toward emergency steps Thursday to rescue the national economy from a possible recession, including tax rebates of $300 or more for many Americans.
Federal Reserve Chairman Ben Bernanke endorsed the idea of putting money into the hands of those who would spend it quickly and boost the flagging economy. (more…)