Economy of Bush
Here are the current top three stories in the NY Times Business Section as of 9:30pm ET, July 28th:
Record Deficit of $482 Billion Forecast
The White House predicted on Monday that the Bush administration would bequeath a record deficit of $482 billion to the next president.
Merrill Plans $5.7 Billion Write-Down
Merrill Lynch said it expected to take a $5.7 billion write-down because of losses on its mortgage assets and plans to raise at least $8.5 billion by selling new shares.
Stock Indexes Continue to Slip
Wall Street stocks headed steadily downward as shares of investment and commercial banks fell again, giving back some of their gains from last week.
At first glance they’re unrelated, but if you think about it a bit, you’ll realize that all three deal with the same subject - the fiscal disaster that President Bush has been to this country.
Stocks are sliding because earnings are dropping. Earnings are dropping in large part because the financial institutions have leveraged cheap money from the government (the Federal Reserve) 20 to 40 times, and now they are in the painful “deleveraging” process. Cheap money (expanding the supply of money) causes inflation, which leads to higher government spending - and deficits.
Please go away George - you’ve done enough.
gk
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Tags: Bear Market, Bush, Bush is an idiot, deficit, mortgage writedowns, NY Times, Stock Market