Quote:
Originally Posted by Dylflon
So now the next logical question is, how do you become undoomed.
Sub-Question: What effect will this have on the election?
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Well, the government made the first big step in NOT bailing out Lehman Bros. What the government needs to do is next to NOTHING to recover. The debt will get cheap, companies will buy it up and the dollars will start to increase as confidence grows and business adapts to the new marketplace. If the government steps in now, we could end up with a depression. Thats the problem with the government getting involved in business: it isn't agile enough. The economy is going to hurt for a bit, but if no one lesses with anything, we should recover relatively quickly, but I'm not sure if we're at the worst part yet. I have a feeling Bank of America is in trouble too.
To avoid this again, the government needs to get a better handle on the Fed when things are going GREAT, and not poorly. Interest rates should have been raised a long time ago. That would have made people ease off the on the feeding frenzy and lending houses would have tightened up their lending practices and debt purchases.
You don't regulate big business directly, you regulate them by controlling the cost of cash and then business will react without eating so much its stomach explodes. Greed is good, but needs to be controlled, IMO.