It seems the more things change, the more they stay the same. The Fed is contemplating another round of printing money to prevent deflation in the economy. But in some respects deflation is what we need right now. Housing and commodities are still too high. The cost of living in urban areas is still tremendously high. Efficiency in business should lead to a decrease in prices. Let the market decide what the real value is. This may be a short term solution, but it delays the inevitable. If the Fed continues to inflate bubbles in the economy we will be set up for another recession. Why should we put more money in the economy without any conditions? The bailouts did nothing but make sure that a bunch of failing banks got to keep paying record bonuses. If you are going to throw money at a problem, at least make some conditions or standards. Fire the executives for faulty planning. And if businesses like General Motors or Chrysler are selling a bad product, let them fail or sell assets to a company that makes a better product.
Don't mistake me for a market fundamentalist. I don't think the market can regulate itself. But supply and demand still applies. And right now prices are still too high. A recent video on youtube has been going viral by a man who says he is part of the "rent is too damn high" party. What does that say about our country when a guy off the street has more common sense than people on wall street and in washington?
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