Bush's Booming Economy -- For The Rich

By Sheila Samples

08/14/07 "ICH" -- -- Sometimes I'm amazed at how much I know about the financial markets and the economy. I don't understand any of it, but I know a lot of stuff, thanks to my friend and mentor, Richard Walrath, who's been to the market more than once. He says when George Bush brags that the economy is booming, he's probably right. The economy is exploding with a big boom, and Walrath says now we are engaged in a great battle to see how long this country can endure.The Fed just poured a bunch of money into the market, which was news to me, but Walrath said the Fed has been manipulating the market for years, especially during the Bush years. "There was great fear the United States was going to follow Japan into a period of deflation and recession -- maybe even a depression," Walrath said. "Interest rates were cut close to zero while hundreds of billions of dollars were added to the National Debt through tax-cuts for the rich and 'Big Bidness.' And it gets worse just at the time the National Debt limit has to be raised again." With things as bad as they are, Walrath says it's going to be interesting to see how this crisis is handled. Congress may have to return early to pass legislation to raise the National Debt. But it makes more sense to me -- since the bulk of our lawmakers were so eager to get out of school for recess, that Bush could decide to handle the whole thing like he does everything else to avoid partisan jawboning or oversight -- just dash off an Executive Order.But the National Debt is just one of many problems battering our economy. Walrath points out a major problem is "all those margin accounts out there with people getting calls to come up with some real money because their stock is down. As you might expect, this led to speculation in housing -- let's flip it -- and millions of people who couldn't afford to pay their rent bought houses." LINK