Sunday, March 23, 2008

How'd We Get Here? And I Don't Mean Burbank

Happy Spring, everybody! For those of you that are a little confused, as I am, about our national financial and mortgage crises and how we got here, here’s a tip: I find that the New York Times is a good source of understandable information. Okay, so is the L.A. Times. But back to what I was saying. Today’s NYTimes has a great editorial entitled Iraq, $5,000 Per Second? by Nicholas Kristof about the connection between the spending on the Iraq war and our current economic troubles. Nobel Prize-winning economist Joseph Stiglitz says, “[Tax] money spent on Iraq did not stimulate the economy as much as the same dollars spent at home would have done. To cover up these weaknesses in the American economy, the Fed let forth a flood of liquidity; that, together with lax regulations, led to a housing bubble and a consumption boom.”

1 comment:

  1. Anonymous6:19 PM

    So many of you people who are moaning about the possible bail out of homeowners in foreclosure have stood by silently for years as our government blithly poured $1 billion dollars a week into the sinkhole that is Iraq. Where was your outrage then?