No reason to be chipper
I cannot understand these central bank projections.
http://www.theglobeandmail.com/servlet/story/RTGAM.20090126.weconomy_gallery0126/PhotoGallery01?slot=2
All these rosy projections about a short recession seem like pure propaganda designed to encourage confidence. Just like the eye-poppingly large 'bailout' packages, they think that people can be reassured. Why on earth do they see this recovery materializing at x point in the future. There will be a recovery but we definitely cant see it yet. We're not even in a recession yet in Canada.
I dont think this economic downturn is a 'problem' for governments to fix. They arent responsible for economic upturns nor are they (usually) responsible for economic downturns. Recessions come with dreary regularity, and its not the result of macroeconomic government policies. They just happen. Usually its sparked by some actual problems, in this case the insecurity started by toxic assets -- bundles of securities where something in it is rotten and ruins the whole barrel. This is a very typical cause for recessions -- new financial wizardry that's actually based on a house of cards. There are a number of problems caused when people think they've found an unforeseen way to manipulate cash and make money. Usually its an illusion, and like a Ponzi scheme it comes crashing down after awhile. In any case, its not the responsibility of the taxpayer to throw money at failing businesses to 'restore' confidence -- we are undermining the long term ability of companies to compete by shielding failing businesses. Let these giant financial institutions fail. Its their own fault that they ended up where they are, and there is no benefit to the taxpayer in shoring them up. Let the axe fall where it may and let the blood (red ink) flow.
I'm at home, quarantined. I have chicken pox. Everyone asks me "didn't you have that already" Well, no, I didnt. I have chickenpox ergo I didnt have it before. I'm grumpy, irritable and I have no patience, appetite or tolerance. I'm highly medicated and only semi-functional again. This is super irritating to me since I was sick in December and now I'm sick again. I was asthmatic in november and under the weather then too. Well, I guess I cant feel like 2009 is going to be so great anymore. I was feeling pretty chipper about it.
http://www.theglobeandmail.com/servlet/story/RTGAM.20090126.weconomy_gallery0126/PhotoGallery01?slot=2
All these rosy projections about a short recession seem like pure propaganda designed to encourage confidence. Just like the eye-poppingly large 'bailout' packages, they think that people can be reassured. Why on earth do they see this recovery materializing at x point in the future. There will be a recovery but we definitely cant see it yet. We're not even in a recession yet in Canada.
I dont think this economic downturn is a 'problem' for governments to fix. They arent responsible for economic upturns nor are they (usually) responsible for economic downturns. Recessions come with dreary regularity, and its not the result of macroeconomic government policies. They just happen. Usually its sparked by some actual problems, in this case the insecurity started by toxic assets -- bundles of securities where something in it is rotten and ruins the whole barrel. This is a very typical cause for recessions -- new financial wizardry that's actually based on a house of cards. There are a number of problems caused when people think they've found an unforeseen way to manipulate cash and make money. Usually its an illusion, and like a Ponzi scheme it comes crashing down after awhile. In any case, its not the responsibility of the taxpayer to throw money at failing businesses to 'restore' confidence -- we are undermining the long term ability of companies to compete by shielding failing businesses. Let these giant financial institutions fail. Its their own fault that they ended up where they are, and there is no benefit to the taxpayer in shoring them up. Let the axe fall where it may and let the blood (red ink) flow.
I'm at home, quarantined. I have chicken pox. Everyone asks me "didn't you have that already" Well, no, I didnt. I have chickenpox ergo I didnt have it before. I'm grumpy, irritable and I have no patience, appetite or tolerance. I'm highly medicated and only semi-functional again. This is super irritating to me since I was sick in December and now I'm sick again. I was asthmatic in november and under the weather then too. Well, I guess I cant feel like 2009 is going to be so great anymore. I was feeling pretty chipper about it.