The big question is whether this weakens or strengthens the economy. Credit alone does not strengthen an economy, but making better decisions does. A tougher economic environment requires better business decisions.
Bad decisions in the past have placed the US economy in a weak position as crisis upon crisis unfolds. What next, the great California summer earthquake of 2011? Not such a far fetched possibility given the alignment of the planets, what? Seriously, we could say the Americans are presently addicted to a process of creating money by easy credit more than consumers' surplus by good business sense.
The relationship between monetary growth in the US, the real stock market value, and unearned corporate profits based on speculative investments in over inflated assets needs to be reviewed.
What a strange ineffective economy has evolved from the dynamic economy of the past. One that does not work even close to capacity! One that redistributes value away from the middle class and one that is a worry to everyone? Can Obama's efforts at leadership repair the damage of the Bush years? Probably not! The real damage has been done.....
http://www.theglobeandmail.com/report-on-business/economy/feds-inflation-call-looks-bang-on/article2020929/
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