It certainly has been a hectic week. The proposed bail-out plan has been criticized, analyzed, debated, everything short of being implemented. Finally, today some sort of plan has been agreed upon.
It is important to ask one question though: how effective will this $700 billion be? Because as this money is pumped into the economy, sure there is more credit around and we get the trickle down effect. Where does this money come from? Ultimately from the taxpayers, or perhaps we add it to the budget deficit, which is already at half a trillion.
I guess it is easy to blame the United State and criticize them, but given all these problems that have been occurring, we are moving into a new age. The US potentially can lose its superpower status in the global economy. Perhaps with this crisis we will learn a valuable lesson and be a bit more cautious with investing in North America.
It is important to ask one question though: how effective will this $700 billion be? Because as this money is pumped into the economy, sure there is more credit around and we get the trickle down effect. Where does this money come from? Ultimately from the taxpayers, or perhaps we add it to the budget deficit, which is already at half a trillion.
I guess it is easy to blame the United State and criticize them, but given all these problems that have been occurring, we are moving into a new age. The US potentially can lose its superpower status in the global economy. Perhaps with this crisis we will learn a valuable lesson and be a bit more cautious with investing in North America.
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