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Economics

"Cash for Clunkers" or a kick in the ribs?

I am not a licensed financial advisor, nor do I have a degree in economics, but I do have a brain. It seems that The Man does not.

The current view is that we have officially been in a recession for a year and a half now. How did we get here? Well, my view is that the country on a whole (The Man is waving the banner at the front of the parade) is living on a non-sustainable budget. Spending more money than one makes can only last for so long before you run out of credit. Oh look, Ma, a credit crisis! So how does The Man propose to get us out? Ooh, ooh! let's throw money we don't have at it. Fill the hole, loosen the credit markets and get the economy running again. My prediction: it won't work. Well, not for long.

My view is that the economy was fundamentally broken long before a year and a half ago. We have been in a slow death spiral for quite a while. At first, we didn't even know that we had a large tumor growing in our liver. We put on a few pounds but we chalk that up to eating out a little too much. Really, that few pounds is a malignant tumor that is taking up more space every day. One day, while out shopping for a new shiny gadget, we collapse, knocking over the salesman, who falls and grabs the store manager for stabilization. The manager tips over some manikins which conk the box-boy on the noggin, giving him a concussion. But he gets up and rambles through the store, knocking things over and leaving a trail of mayhem wherever he goes. The manager tries to keep the box-boy from wandering out of the store, but in a freak accident, the fluorescent light display near the door crashes down and sets the display on fire, blocking the exit behind box-boy. The store is consumed by fire, as are the neighboring businesses. Box boy leaves the area and shares his anti-Midas touch, which quickly infects every city on earth, which ends up as a smoldering rock orbiting the sun.