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Tuesday, July 15, 2008

"I'm not an economist, but I do believe we are growing" - George Bush



I found this on Perez, see there is a reason to check out internet equivalent of tabloid trash.

Mr. Bush believes that he is "optimistic" and that the economy "isn't growing as it should". He is right he shouldn't talk about the economy since he isn't an economist. In fact, he's barely real; from what I've seen on Comedy Central he's really an immature cartoon who engages in hilarious antics.

Another opinion, that actually matters, from our Fed Chairman Ben Bernanke, is that inflation is growing and was pretty grim about the medium-term outlook for the U.S. Economy. He also went on to say that the Fed was ready to continue to help large financial institutions to prevent any adverse domino-effect.

When the individual homeowner becomes delinquent on their mortgage, their house is foreclosed and auctioned. However, when the bank that backed that loan and trades that loan as a CDO, realizes the mark-to-market price was nothing since it was illiquid, and faces issues of solvency, the government steps in. "Too big to fail" - is a term I've heard often when discussing these issues.

I'm not sure what my views or opinions are. Things are murky right now. It sucks graduating into this stinker of an economic situation. Yet, I believe it might be an advantage to gaining an entry into finance firms, mainly due to less popularity among potential candidates.

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