Forbes on Bush: I wish someone would listen...

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Great article by Steve Forbes about the current state of our economy and why we're feeling the pains that we are. Take a few minutes to check it out.


"The dumbest, most destructive economic policy of the Bush Administration has been its weak-dollar position--letting the dollar slide in value against the euro, the yen, the pound and gold. The repeatedly disproved theory in operation here is that cheapening your currency will improve your trade balance and that an improved trade balance makes your economy stronger and wealthier. Put aside the meaninglessness of the trade balance as a measure of economic health or sickness--the U.S., after all, has had a trade deficit with the rest of the world for 350 years out of the last 400. A weak-currency policy has disastrous economic and political consequences--most immediately, our tumultuous equity markets.

Look at what's happened since the Federal Reserve began creating excess money in 2004. The already booming housing market was, in effect, shot up with steroids as lending standards were lowered to put all the excess liquidity to work. We are still feeling the effects of the subprime mortgage crisis, as banks tighten up on lending (they don't even want to lend to each other, which tells you something), which in turn has sharply slowed the economy."

Bush's Big Boo-Boo from Forbes.com

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