Tuesday, September 16, 2008

Worried Ignorance

So, you may have heard or read something lately about how the U.S. economy isn't doing so hot over the last few days. One sign of trouble is when the New York Times - not known for sensational alarmism - uses words like "crisis" and "spreading" in the first sentence of their story.

I have to admit that I know very little about economics (macro or micro) or how these big financial institutions work or what role they play, exactly, in our economy. (I took one econ class in college in which the professor always used analogies relating to alcohol consumption. My favorite was when he told us that during the oil shortages of the '70s he drank a lot of gin to stay warm, so gin and oil were subsitutable goods for him.)

Despite knowing so little about it, I can tell that we're in trouble here. I'm not sure why and I certainly don't know what to do about it, but it looks pretty grim. I mean, for a fundamentally strong economy, this seems like a pretty bad development.

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