Today some big economic news came out which most americans will not hear since it does not involve a prostitute, a governor, or Paris Hilton's hair. First, consumer spending is down yet again this last month. The 0.1% increase is negligible due to the effect of inflation, so consumer spending is lower on magnitude. This means that more money is going to pay bills and buy food instead of buying that Ipod or designer clothes. Anyone who has gone shopping for groceries can see that inflation is definitely on the risse. Eventually the huge retail sector is going to crash since wages have been stagnant for years, while energy and food prices have flown.
Also, the economic conservatives at the Fed have decided to infuse more money into banks hoping to stave off a recession. This is a bailout by any measure, forcing you and I(and every other taxpayer) to subsidize the poor lending practices of banks. The same people who praise this move now can be seen talking about the need for failing businesses to be taken out when times are good. It's a horrible waste of money and creates more debt which brings down our economy over time by having foreigners purchase the bonds to finance said debt.
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