Hate to Burst Your Bubble

Good news!! The economy is recovering. We can now all hold hands skipping through the meadow because the economy is fixed. Or is it...

It may be steadying, for now, but it will not grow like it did before the stimulus plan. And in my opinion, I think things could get much worse 5 years down the road.

Why?
1. Inflation - in our infinite wisdom, we basically started to print money, to buy stake in banks, car companies, and other financial institutions. We printed money for a "stimulus" plan to create temporary, make-work jobs, and further political initiatives. With this much money in circulation, with no backing, the value of the dollar will tank. I am not talking like it will be the Weimar Republic all over again, but it could be like the late 1970's, early 1980's.
2. Taxes - We got a tax break!! Except, that tax cut will expire, and we will have to start paying an unprecedented debt. Socialized health care, cap and trade, and various other programs will start tugging at the ole pocket book. More taxes = less discretionary income = less spending. Companies will do their best to get out of the USA so they aren't taxed to death.
3. Government - The government will now run health care, banking, and the automotive industry. Good news considering the bang up job they did with social security and medicare. We have put unions on the boards of car companies, it is like the fox guarding the hen house. We want to reduce the salaries of those in the financial sector, force the auto sector to make cars no one will want, and make us pay for our carbon emmissions.

I hope we don't go to a place of stagflation, but it looks pretty inevitable. I think there are ways to fix this, and I will share my ideas later.

My two cents