Crisis Managed for Gain

Written by Fritz on November 4th, 2008

Do you want Obama to be elected?

What better way than to make the economy look worse just before the election. Does that sound pretty cynical? Note how we have a finance committee led by democrats. These guys, we’ll assume, know something about finance. They would know, for instance, that large government expenditures on all sorts of projects are simply a future drain on investment and consumption. (Y=G+I+C)

The larger each proposal gets, the more the market adjusts downward to compensate for the recognition that investment capital (and consumption) will be reduced or displaced in the future. So the democrats continue to promote and pass expensive pork laden legislation in the name of crisis rescue, making certain the market reacts in a way that discourages people at the polls, while Obama blames it on the bad economic policies of the last eight years.

You go!


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