Question on the economy...

[Javaman]

just suppose, there were no rate cuts and no pumping of dollars into the market? What, in theory, would have happened to the economy?

[magellan]

1. The market would be in the process of correcting itself

It would be painful, but not as bad as the bad they keep putting off. And that just keeps getting...badder.

[shaniqua6392]

4. They are just putting it off long enough for

Dems to take over in Washington. Then the whole thing can crash and Bush will not be blamed.

[magellan]

5. They can blow all the fairy dust they want on the financial markets

It won't change the misery most Americans are already experiencing from spiraling food and fuel costs due in good part to these boneheaded moves by the Fed. And it'll only get worse before November. Americans will know who to blame.

Of course, Repubs don't really care about keeping the average American happy, they care about keeping their big business cronies happy and lining their own pockets. That's why the keep doing exactly the opposite of what they SHOULD be doing to help the economy.

I wonder how the big players will fare without the American consumer to kick around. What's coming down the pike will certainly be devastating for everyone else.

[Vincardog]

2. The same thing that will happen anyway. The dollar will tank. Inflation will rage. Everyone who you

will call the debt. There will be no money to borrow unless you have that money in your own hand.
Then the assets will fall in price. The rich will buy everything worth having for pennies on the dollar.
The fed will come up with a stabilization plan to renege on all social programs with the only money available to go to military police and prisons.

The Amero will be proposed as the answer it will join Canada the USA and Mexico into a common currency.

The bankers will have succeeded in destroying our great experiment.

[ThomWV]

3. Well, that would be a first logical step in combating inflation

So it would be a good first step. The next thing necessary would be to reign in lost tax revenue.

[leftofthedial]

6. the economy would be FAR better off

the recovery would not have been jobless, the unregulated predatory capitalist repuke chasm that now looms before us would be a mere puddle

The median income would be rising again