The Futility Of Lower Interest Rates, Obama Motors, “Atlas Shrugged” Sales Surge & Confidence Mounts
As stock markets surge, GM’s future is suddenly bright and consumer confidence soars, here are some recent blog posts worth the read with some alternative insights.
If too much debt caused the financial crisis, why are governments world wide trying to force more debt on an over leveraged world? Japan’s policy of rock bottom low interest rates did not prevent Japan’s “lost decade” of economic growth and results for the rest of the world will be no different now. Why low interest rates do not improve the economy.
Now that the government, aka known as “the people” own General Motors, can we expect to see a quick turnaround that has eluded GM management for decades? If GM cannot come up with products at a competitive price that buyers in a free market will purchase, the huge taxpayers subsidies will have been nothing but “stimulus waste”.
The truths in Atlas Shrugged continue to promote big sales of a book written half a century ago. Government policies continue to protect and save the least productive while killing the overall economy. Our present political system almost guarantees the continuation of self destructive governmental economic policies.
Is the increase in consumer confidence in the economy justified? Although we seem to have avoided the economic collapse widely feared just several months back, what has really changed? Balance sheets and incomes have not improved and job losses continue. Do not expect a “V” shaped recovery.