posted on Jan, 23 2008 @ 11:19 PM
It's all about money; it's so much easier to outsource things to China or India than to make it here and pay "inflated" wages. If you're a
business owner and you can get the same quality, you're going to go over seas....so this money that Bernanke and Bush are pumping in will allow us to
buy more products that are sold by companies here but produced overseas. I'm a management major; these are the things we talk about and discuss in
seemingly every class, more specifically in a class about Multinational Organizations. So if I'm an owner I could technically not make anything in
my company and just sell it, sort of like a middle man and then I would reap the financial windfall assuming my product sells. If you're an owner it
makes sense, if you're the worker it sucks for you. The only people who benefit from this are the companies(higher profits) and the consumer(cheaper
prices). I'm sure most of you already knew this though.
However, even though Dobbs is blaiming the government for this, let us not forget that the consumer, through unresponsible spending has also created
and added to this problem; the other being the banking institutions. Bernanke cutting rates and pumping money into the economy, which the Fed just
magically does, will not help the economy, it will help Wall Street and investors, but most people don't care about that when they have to feed and
take care of their families. The way people spend on their credit cards is one major reason for people not being able to spend at the moment. The
lenders got hit hard because of their own ignorance and assumptions that people would pay back what they owed. Dobbs main arguement appears to be
that the government should have regulated the banking industry more so than it did. Look back to the 80's for an example of what happend then.
Thats why the Fed now has the policy that some banks are "too big to fail". Of course, the legislation came after a major lender went belly up. I
would expect to see some type of regulation on how loans are given out because just about anyone could get credit a year or so ago; it was easier to
get a house than an appartment. In hindsight there where a lot of decisions that should have been made differently, however, hindsight is 20/20 and I
would expect some type of regulation to be put into place regarding the practices of risky loans.
Hey I have to pay taxes this year, wonder if I'll get this $800 break even though I won't have to pay much. I'd spend my $800 by investing back
into the market...way better option than gold/silver or any precious metal out there.
[edit on 23-1-2008 by ChrisJr03]