That is what this stimulus package is supposed todo

It willnot stay at 2% forever. And as the Feds begin to rise from 2% to 2.25% to 2.5%and on and on, investors will not be happy. Businesses will not be happy. Bankswill not be happy. And in turn, the people will not be happy. Investors willtake out money from the market causing stocks and businesses will suffer fromthis withdrawal. Banks will not be able to profit as much causing higher loanswhich will affect the people looking to purchase homes, cars, and otherinvestments. I feel once this bear market is over, we’ll have a nice short bullmarket, and then another bear market will follow. And I feel it may happen onceBernanke’s term ends and another unfortunate soul has to conical twin screw barrel take his place andattempts to correct the wrong that is being done.Back in the 1930’s, Theodore Roosevelt felt it was best to involve thegovernment in the management of our economy and with a series of programs hesuccessfully brought the American people out of the Great Depression.Lately, it seems as if the government is slowly edging us back to the sameposition we were in back in the 1930s. Now I’m not a conspiracy theorist andsaying the world is coming to an end, but here is one fact that I do know andeveryone can relate to.

Before the stimulus package was proposed and when theFederal Reserve was lowering interest rates in an attempt to help the Americanpeople and businesses. President Bush, in a press conference, apparently hadabsolutely no idea on the state of our economy in relation to the oilcommodity. I don’t know about you, but I’m glad his term is about to end,because I do not want a President running a country who is completelyclueless on the state of an economy he is supposedly involved in.So that begs the question. Should the government limit itsinvolvement in the management of our economy? Or should it expand theirinvolvement? Honestly, I’m tied between the two. I feel they shouldexpand and gain more control of the Federal Reserve. As I’ve said as aninvestor, I like the cutting of interest rates because of the gains, but as aneconomist I despise it because of the consequences that come with it. And Iwould rather deter the consequences over gaining an extra few bucks. I know thegovernment can’t interfere with the business of the Federal Reserve, butsomething needs to be done because it is the American people that are sufferingsuch affects.

At the same time, I feel that the government should limit itsinvolvement, because honestly, I don’t know what more can be done. When thegovernment first got involved back in the 1930s, they opened up moregovernmental jobs, created welfare, and did all they could to help the peopleand in turn help the economy. That is what this stimulus package is supposed todo. What new programs can be made? What new routes can be taken?Okay, I had a lot to get off of my chest on that. I re-read my essay, then Iread David Gross’s article and it just brought up a LOT of questions andopinions in my head. Now please remember, these are my own opinions andinsights. If it happens, then I want for everyone to treat me as every othereconomist out there that make obvious predications but are still somehowpraised by the media. If it doesn’t happen, then the best I can say is at leastI provided some facts to support my opinion. That’s more than I can say forsome of these people making their assumptions.