|The Dow got hammered again today. Nothing the Fed or the feds are doing is working... and with credit in seizure, J.D. Powers fears the global automobile market may completely implode by next year. So what's the problem? This from a good old fashioned conservative:
"The crisis we are entering is not due to a lack of credit. The core of the problem was our dependency on credit in the first place. A lack of credit is a symptom of our dependency on it. It is a crisis of Consumer Capitalism, the idea that Consumption can be the major source of growth in an economy. We must somehow transition to Producer Capitalism again. We have an entire economy, almost worldwide, based upon debt and consumption. It could not last because over time every dollar of debt created creates less and less GDP growth in the economy. Therefore, more and more debt must be created just to keep the same rate of economic growth. We are now literally consuming our economy to its death. The efforts to "get liquidity going" and the like, while maybe easing conditions in the very short term, weeks, are only going to make the collapse greater. It is simply adding more kindling to the bonfire of debt that is already raging."
Labels: economic crisis, the Bush recession, the McCain-Bush economy, Wall Street