This Market Isn't Free Redux
I was just reading a CNN report about stocks dipping lower this morning. No surprise there. The dismal housing market will continue to do that for a while.
What makes me shake my head though is the inflation figure that the government reports that strips out "volatile" food and energy costs to consumers. What sense does that make?
Consider that the problems in the housing market are based on the inability of consumers to pay off their debt. Where does then the rest of the money these consumers make go? Would anyone care to venture that a good portion of the average American(a country with a known obesity problem) goes into the food budget? And energy costs? What do you think is covering the costs of air conditioning, heating, running appliances, computers, lights, and making their gas guzzlers move along the highways? A mere 1% of their budgets?
This is where "economists" of the governmental variety miss the mark. These inflation numbers aren't close at all to reality. Add the "volatile", and never going down food prices and the up-and-down fuel costs and inflation will look much worse than the numbers reflect. Add to that the ever escalating cost of health care (remember the maladies associated with obesity) and suddenly it's a different world. An inflated world that the Feds will make worse as the dump more money into the banking system, thereby contradicting the free market theory and creating inflation(too many dollars chasing too few goods and services).
This market is the result of unregulated greed and poor fiscal practices. It reflects spending what you don't have, robbing the Treasury, and priorities that do not reflect the Americans these politicians represent.
The cons have been boasting boom economy forever, and the lefties have been saying the bubble will bust. Seems the cons are wrong, and not for the first time. Nor the last. But their days in power and their return to power are slipping away with every point the market slips, and every bit of news that uncovers these unregulated and risky financial operations that line the pockets of the few at the expense of the many.
What makes me shake my head though is the inflation figure that the government reports that strips out "volatile" food and energy costs to consumers. What sense does that make?
Consider that the problems in the housing market are based on the inability of consumers to pay off their debt. Where does then the rest of the money these consumers make go? Would anyone care to venture that a good portion of the average American(a country with a known obesity problem) goes into the food budget? And energy costs? What do you think is covering the costs of air conditioning, heating, running appliances, computers, lights, and making their gas guzzlers move along the highways? A mere 1% of their budgets?
This is where "economists" of the governmental variety miss the mark. These inflation numbers aren't close at all to reality. Add the "volatile", and never going down food prices and the up-and-down fuel costs and inflation will look much worse than the numbers reflect. Add to that the ever escalating cost of health care (remember the maladies associated with obesity) and suddenly it's a different world. An inflated world that the Feds will make worse as the dump more money into the banking system, thereby contradicting the free market theory and creating inflation(too many dollars chasing too few goods and services).
This market is the result of unregulated greed and poor fiscal practices. It reflects spending what you don't have, robbing the Treasury, and priorities that do not reflect the Americans these politicians represent.
The cons have been boasting boom economy forever, and the lefties have been saying the bubble will bust. Seems the cons are wrong, and not for the first time. Nor the last. But their days in power and their return to power are slipping away with every point the market slips, and every bit of news that uncovers these unregulated and risky financial operations that line the pockets of the few at the expense of the many.
posted by Gonzo at 06:45
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