Today the market came to terms with the fact that the recession is not over by a long shot, and cheerleading by the administration will not fix our problems. Nor will bailouts to outdated or poorly managed companies. A bunch of new houses in February sounds positive, but they won't do us any good if banks won't lend people money to purchase them. People don't have money to buy new houses right now anyway. That is a major reason we are in this mess. The housing market will pick back up once people have had enough time to pay off credit cards and build up downpayments. These things must happen before banks will approve loans. If they don't, we will be stuck in this rut for a long, long time because people will continue to get mortgages they can't afford. [more]
I can’t help but wonder how we are going to pay for the latest additions to the national debt. How about we slow down on spending, and try to stimulate our brains a little more to help fix the economy. As individuals we know that we can’t consistently spend more than we earn. The same concept applies to any business or government. At a national level deficit spending won’t work, but the collective brain of congress doesn’t seem to get this point. Don’t get me wrong, I know that deficit spending has its uses, like during World War Two we had to spend a ton of money in order to keep our troops well equipped and fed. Most of the time however, I think deficit spending should be tightly controlled. [more]
So after much research and many focus groups, I have come up with a plan to save the American economy. As we all know, it takes “bold action” to maintain our status as the world’s largest economy and its most prosperous country. Small steps may slow the decline and will only delay our downfall. We need to act quickly and decisively, but by doing so we can save or create millions of jobs. [more]
Now this is a good idea! Though I am suprised that the Airline lobby hasn't shut it down yet.
Many economic booms throughout history came at least partly from an increase in connectedness, or “globalization.” Whether we talk about steam engines, automobiles, or the internet, being able to move goods at a quicker pace has often been at the heart of rapid economic expansion. This trend is likely to continue in the foreseeable future. We can help the economy in the short term and the long term by investing heavily in faster and cheaper transportation, like maglev trains. This would create jobs now, and quicker shipping for goods later. For now though, I will be watching semi-conductors and alternative energy stocks, because Obama has his heart set on a smart electric grid, and this means lots of jobs in both these sectors. [more]