The Bush administration ran a disastrous fiscal policy and moved the country from budget surplus to budget deficit. Currently over 80% of Americans think the country is on the wrong track. At the same time the Fed conducted a very poor oversight of banks and some went or are about to go under. But the paradox here is that the government is a huge borrower in the US economy and as crazy as it sounds for the government things are better now as interest rates are collapsing as everyone rushes to the safety of their bonds. So as opposed to corporations the more you mismanage government the cheapest it is to borrow. Something is not right.
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Marc on April 4, 2008 ·
I’ll have to disagree on this one.. While the government’s policy in pretty much every front has been a mess, the credit crisis has been caused by overborrowing by individuals and corporations with little oversight.. Trying to solve this by making credit cheaper is just adding fuel to the fire.