Tuesday, March 04, 2008
In 1999 we were in a technology bubble. Everyone knew it. When the bubble burst and NASDAQ crashed, it was the end of the world.
Except it wasn't the end of the world. Almost immediately the real estate bubble happened. Everyone knew it. By 2007, school crossing guards making $18k had 3 houses in California. Now it's crashed, and it's the end of the world.
So this time is it really the end of the world? Are commodity prices going through the roof because we are going into stagflation? Or are we about to enter the newest bubble in oil and gold?
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Hi, it's me again. You know this huge trade deficit that is causing us to have to sell everything that's not bolted down to China and The Middle East? The one that's caused by us consuming more than we produce? The one that's probably going to be exacerbated by these ridiculous stimulus checks whose goal is to have us consume even more and produce even less? Why don't we fix the problem by PRODUCING MORE instead?
Hey, what was the name of that type of economic policy that is aimed at increasing our production? It's been quite a while since it's been used so my memory is a little rusty. Oh that's right. It's called SUPPLY-SIDE ECONOMICS.
Great, now I just lost my remaining two readers.
Except it wasn't the end of the world. Almost immediately the real estate bubble happened. Everyone knew it. By 2007, school crossing guards making $18k had 3 houses in California. Now it's crashed, and it's the end of the world.
So this time is it really the end of the world? Are commodity prices going through the roof because we are going into stagflation? Or are we about to enter the newest bubble in oil and gold?
---
Hi, it's me again. You know this huge trade deficit that is causing us to have to sell everything that's not bolted down to China and The Middle East? The one that's caused by us consuming more than we produce? The one that's probably going to be exacerbated by these ridiculous stimulus checks whose goal is to have us consume even more and produce even less? Why don't we fix the problem by PRODUCING MORE instead?
Hey, what was the name of that type of economic policy that is aimed at increasing our production? It's been quite a while since it's been used so my memory is a little rusty. Oh that's right. It's called SUPPLY-SIDE ECONOMICS.
Great, now I just lost my remaining two readers.
