Dallas (WiredPRNews.com) – Principals of basic economics dictate that when banks fail the central banks of the country becomes the lender of last resort. In the U.S.’s case, the FED plays this role and bails out Bear Sterns to save the Wall Street from “Black Monday”
But is this enough amidst feeble economic indicators.
“We are no longer enjoying the buoyant economic climate of the last two years. We are no more in economic ‘good times’,” said EU Economic and Monetary Affairs Commissioner, Joaquin Almunia. “The US economy is clearly slowing, perhaps even entering a recession,” added Joaquin Almunia according to a copy of his speech received by AFP.
Good News for US Workers
With the U.S. dollar in the week spot, outsource marketing is also going to be effected as the dollar will fetch less in contra value and American companies who are competing with other countries as the largest outsource client will need to consider hiring local resources. This is, of course, good news for US labor market. Is this a blessing in disguise?
Overall, the measure FED is taking are Economics 101, but is this good for the goose as much as for the gander.