Stimulus, recession and the giant fraud…

Remember on Monday when the US markets were closed but the world marketswere in free fall?  And remember how the news casters and money thinkers were telling us that  giant debt and “looming” recession were the cause of skittish markets all around the world?  Remember, too, how our markets dropped at the opening bell and had a few days of unease before settling down?  And remember how that all caused President Bush and members of Congress to get all lovey-dovey to pass that suck-job stimulus package?  Yeah, you remember all of that?  Well, it was mostly all wrong, according to the International Herald Tribune.

Apparently the turbulence in the world markets and then our own is the fault of Jérôme Kerviel, according to the article.  He is a scampishly rogue investment guy who managed to loose close to 7 billion dollars for his European bank, Société Générale.  The bank discovered the fraud and then had to borrow money to shore up it’s business and that set of a string of fears which caused the whole world to panic.  Read the story for more details.

So, knowing all of this now, can we stop the stimulus package?  Can we just let the markets ride out their normal corrections?  Nope.  Because the government really, really wants to help us.  And that is almost never good.


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