I am definitely no economist, but I do know enough to know that the American economy is freaking me out! Bail outs, new legislation, huge companies going under, plans to spend $700 billion on a bailout package, where did all this come from? What is causing these problems? Where does the $85 billion for AIG and the $700 billion for the new bailout package come from and who pays for it? How are these big companies allowed to get so big that our economy cannot function if they go under? The buzz says sub-prime lending is to blame for a majority of the financial crises, or in AIG’s case it is insuring these ridiculously risky loans that have gotten them in trouble. I hear plenty of explanations in the news and all I can gather is that “holy crap we are in a lot of trouble”, the rest is all confusing gibberish.
In my personal assessment we have an economy that is supposedly led by the invisible hand principal. Whatever is needed will be supplied to the economy by someone stepping in to capitalize on the current
need. From the latest snap shot of the economy is impossible to see past the giant invisible hand. The hand seems to be anything but invisible; instead it is in full view. I personally feel great with the hand looming lightly over our economy, regulating the size and actions of corporations that are large enough to destroy our economic well being. What I am not a fan of is the current heavy hand sweeping in to clean up what it has neglected to be prevent. I feel like a moderation in all things approach is what is needed here, neither heavy nor invisible hand but more of a warm and lightly soothing back rub kind of a hand. As Benjamin Franklin has said, “An ounce of prevention is worth a pound of cure”.
In my personal assessment we have an economy that is supposedly led by the invisible hand principal. Whatever is needed will be supplied to the economy by someone stepping in to capitalize on the current
need. From the latest snap shot of the economy is impossible to see past the giant invisible hand. The hand seems to be anything but invisible; instead it is in full view. I personally feel great with the hand looming lightly over our economy, regulating the size and actions of corporations that are large enough to destroy our economic well being. What I am not a fan of is the current heavy hand sweeping in to clean up what it has neglected to be prevent. I feel like a moderation in all things approach is what is needed here, neither heavy nor invisible hand but more of a warm and lightly soothing back rub kind of a hand. As Benjamin Franklin has said, “An ounce of prevention is worth a pound of cure”.