Originally Posted by Big Bird
OK then...well I guess they Democrats really screwed the pooch this go-round because they really haven't done very well in terms of manipulating the markets.
I'm sure I have already said it, whether you want to listen or not. The free market cannot be held at bay for too long. What goes up must come down, bubbles burst; pick your cute little quip to explain it. The massive bubbles and busts we have been seeing for decades now is a direct result of trying to artificially push the markets and economy too high too fast without any firm foundation and the resulting correction.
This is why any market dip is usually referred to as a "correction." It went too high too fast due to whatever reason, and is now falling back in line with its true vaule.
The latest was caused by the sub-prime market explosion and resulting housing boom combined with lower than average interest rates and easy free money for anyone with a pen.
Doesn't matter how much anyone wants it to stay inflated, eventually artificially "robust" economies collapse back to reflect their fundamentals. The role of the Fed and every other financial agency is to reinflate the bubble as fast as possbile with low interest rates and stacks of devalued cash.