The Government’s Actions Are Making the Financial Crisis Worse

The government’s previous actions lead to the current financial crisis. See this.

Moreover, the government’s current actions are actually making things worse:

  • The “Central Banks’ Central Bank” says that all of the “central bank intermediation may in some cases weaken banks’ incentives to resume their intermediation function”.
  • The bailouts are causing HIGHER mortgage rates for consumers
  • The government’s commercial paper buying spree is INCREASING the cost of borrowing
  • They also undermine consumer confidence. For example, consumer confidence is now at an “all-time low”, due partly to “increasing uncertainty about the government’s rescue plan“.

Ill-advised government actions regarding the economy are not a trivial matter. For example, economists at UCLA have concluded that some of FDR’s policies extended the length of the Great Depression by 7 years.

The government’s attempt to stop the inevitable deleveraging process will also backfire.

This entry was posted in General. Bookmark the permalink.
  • http://www.blogger.com/profile/01981381449429373197 Don

    You may be interested in my blog post about GW and has a Five Point Plan for restructuring the US economy. See http://new-additions.blogspot.com/2008/11/november-george-washington-and.html

  • http://www.blogger.com/profile/17497535830962810665 game gold

    After separate for one year, I can not leave you, leave Entropiauniverse ped . Now I buy Entropia Universe Gold again, I do not want to leave you, but at that time, I have no idea. Buy Entropia Universe Money is the thing I want to do for long time. I know that cheap Entropiauniverse ped is your life. So I will try my best and do not let you pass away. In my mind, I think I Buy Entropia Universe Gold is the fate.

  • http://www.blogger.com/profile/14557050233215429265 筱娅

    Do you like playing in the game which you need to use wow gold, when you do not have World of Warcraft Gold, you must borrow warcraft gold from friends, or you buy wow gold. If you get cheap wow gold, you can continue this game.

 

 

Twitter