The Dow Jones went up almost 500 pts. today in reaction to the feds plan to purchase "toxic assets" from banks. We purchase toxic assets helping the banks clear away their bad investments. Tax payers take the hit and banks are in a better position to recover and make a profit. I suppose they must do that so there will be more $$$ available for bonuses.
For the average person like myself who does not have a thorough understanding of economics everything that has been happening has been a mystery. It seems our overspending has been part of the problem but is also the answer. Since the average person won't buy that new car or shop retail the government is doing our spending for us. It helps to have a printing press I guess.
Advice on what the government should or should not do is similar to those medical bulletins we hear that say "drink the wine for heart health" or "drinking alcohol causes cancer". Who to believe?
We had a traveling teacher in church yesterday with a refreshing teaching. He said Job, the biblical book about the guy who lost everything, moaned and sought council from his friends and acquaintances for nine months without success. Things got worse. Nothing improved until he turned to God for answers and everything was restored to him.
Just because the government says something is "to big to fail" and seeks to rescue it doesn't mean they can. Remember what they said about the Titanic? It was seen as indestructible but failed because of rivets.
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