A Future Of Bubble Creation

As we speak the Government is quite possibly working on implementing new and aggressive strategies that will create new artificial bubbles within the stock, credit, and real estate markets, in a desperate attempt to drive us out of this relentless recession. The problem is that we have been there done that, and will undoubtedly return at some point to the negative feedback loop and systemic economic problems we are experiencing presently. It is now clear that the stimulus programs have made little positive impact in their intention of freeing up capitol for loans within the banking industry, in addition job creation, and loan modifications have all but failed and the stock market continues its highly volatile path. This administration will have to artificially re-inflate real estate values, deleverage massive debt loads, and somehow inflate the credit scores of those with bad credit in order to right this economy. Even stable consumers are now hording capitol and savings are the highest in decades. The net result of all this activity will cause one of two effects deflation or hyperinflation neither of which is a desirable scenario. It is now time for the fed to look at common sense indicators such as GDP, EARNINGS, UNEMPLOYMENT, and other core economic data before it throws more liquidity in the form of TARP money at the all consuming toxic mortgage market. Recent stock prices in steel, aluminum, durable goods, and diesel supplies show continued contraction not expansion, even an individual without any formal education as myself can figure that out.