We’re looking at 35 percent unemployment by the end of the month. Millions of businesses are laying off, and will close permanently before long. What’s going on with the Dow? Why is it going back up? It’s drunk. Trillions of dollars in government rescue money gave market traders the illusion that government can indefinitely sustain the booming economy we used to rely on the private sector to do. They will soon learn otherwise (and they know better), but for now, they’re inebriated.
In 1933, FDR “stimulated” the economy as our government is doing now. What followed were 8 years of a prolonged depression, including a nasty “recession within a depression” in 1937. It took World War II to end it all, only because FDR was forced to step out of the way of private business so America could win the war. Government “stimulation” does not have a stellar record.
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