Are Bush and Paulson LYING through their teeth????
Aug. 30 (Bloomberg) -- President George W. Bush said the U.S. economy is ``beginning to improve,'' and he credited the $168 billion stimulus this year with helping to ward off a recession.
Britain is facing "arguably the worst" economic downturn in 60 years which will be "more profound and long-lasting" than people had expected, Alistair Darling, the chancellor, tells the Guardian today.
In the government's gravest assessment of the economy, which follows a warning from a Bank of England policymaker that 2 million people could be out of work by Christmas, Darling admits he had no idea how serious the credit crunch would become.
Alistair Darling is Paulson's counter in England. The problem England faces is similar to the problem we face except our is much BIGGER!!!!!
When you have too much debt and too little income, default/bankruptcy is the outcome. Bush admitted in a hidden camera shot that Wall Street got "drunk" lending money.
Once the bankruptcies start, they create more bankruptcies and the process gets bigger and faster. Without a doubt, Darling is the most prominant official in the world to sound the warning bell. From this perspective, based on the quantity and prevasiveness of debt supported by real estate that is defaulting and collapsing in value......this is could make The Great Depression look like a mild recession.
Our thoughts are with those feeling the brunt of the storm this weekend.