Don't Worrry, Be Happy

I'm not an economist but it sure looks like Ben Bernanke, the Federal Reserve chairman, is smoking the same stuff as Bush and Cheney with respect to understanding the reality around him. The Federal Reserve chairman said Wednesday that he did not expect the escalating problems in the mortgage lending business to spread to the rest of the economy, but noted that the Fed had given itself the “flexibility” to adjust interest rates should the outlook change for better or for worse.

Seriously, here we are with a war that has cost us more than $400 Billion so far and what's worse 90% of that $400B is on the credit card. Why should we worry that all during this horribly expensive war Bush has been giving the corporations and wealthiest in this country massive tax cuts? Don't forget to add to that increasing oil costs plus a crashing real estate market that has over $600 billion in sub prime loans rapidly going bad not to mention a growing list of existing homes sitting on the market. According to good old Ben we shouldn't worry about it everything, is going to be OK.

Sorry Ben but I'm worried. Sooner or later the Chinese are going to want to be paid back for financing Bush and Cheney's little war and there are only so many defaulted home loans the market can bear. There are only so many unsold houses sitting on the market before the home construction industry collapses and thousands and thousands of workers are on the street. There is only so much elasticity in the average household budget to absorb ever increasing energy costs and the concomitant rising costs of food and virtually everything else. No, sorry Ben, but the light I see at the end of the tunnel is a train.