Wednesday, January 21, 2009

Alan Greenspan policies, Bailouts and Future inflation/Huge bubble

After the dot-com bubble, most people praised Alan Greenspan about the way he handled the economy by not letting things cool. He cut interest rates. Now everybody is blaming him for the mess that is created now.

Why don't people learn from mistakes, why create stimulus packages and bailouts that you are going to regret later. As a layman, I do not understand how the stimulus is going to work. If it works, it will end up postponing the crisis to a later date to a bigger crisis. If economy is in a mess, you need to solve, not postpone it.

How is America planning to solve the 2 trillion dollar deficit? Being the leading economy, if America fails, every one fails with it.

If bailouts are not going to work, what is going to work. What can be a solution which does not cause problems for so many people? Is there a way out?

I think pumping more money into this market is going to create a huge inflation sometime later. God knows what these wise economists have in mind to solve it. I could not find anything on how the extra money supply will be solved. How the central banks plan to suck the money from the market. Do you think they can suck it off the market?

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