Posted By Guy Jordan
not as a percentage of GDP it isn't
2. highest unemployment rate in recent memory;
3. downward revision of 1st and 2nd quarter GDP figures;
Still higher than any other countries GDP
4. Taxpayer bailout of FannieMae/FreddieMac
Annoys me a lot but not a fundamental weakness.
5. Collapse of Leymann Bros.;
Companies fail in good times too.
6. Distress sale of Merrill Lynch;
7. Govt. purchase of AIG;
REALLY upsets me but I'm no economics expert... though they disagree too.
8. Govt."rescue plan" of bank assets costing per Treasury Secret. Paulson "100s of Billions".
Yep, causing harm to protect short term political power. Could sure doom us if we keep it up... are we going to do that? My crystal ball is fuzzy.
Did I forget anything?
I'm sure you did. Like what is a fundamental and what do you expect out of one? Fundamentals are all about potential, like the foundation of a building they let us do great or terrible things to the house but still hold it up. If the foundation fails it doesn't matter how pretty of ugly the building is, it will collapse. Some of your points are about eroding the foundations of the US economy and some are just problems.
There is this: 2 days ago NPR asked Business Week Bureau Chief why the feds bailed out FannieMae/FreddieMac but let Lehman Bros go to the wall. His answer: The Chinese govt owned billions of dollars of FannieMae/FreddieMac stock/assets. If the U.S. let the Chinese lose that money, the P.R.C. may not be inclined to keep purchasing U.S. Treasury bills. That, my friend, speaks loudest of all.
more of the same - politics and power.