Principles

I was interested to note how directly the ongoing financial meltdown and the massive federal emergency bailout package were related to a section from my book, which reads:

The economic recession which began slowly with the “dot com bust” in the year 2000 was then exacerbated by many other factors such as spectacular corporate scandals and terrorism.

The Bush administration, eager to look effective, responded to the recession by giving massive tax cuts to the country’s wealthiest people.  At the same time the Federal Reserve lowered interest rates over and over, encouraging people to take out loans.  Essentially the plan was to borrow our way out of a recession.

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