Critical mistakes the US economy made
Posted by Stephen Cline on August 16th, 2010The US economy may be coming out of the woods, but it seems as if the US economy had made a lot of mistakes that are coming home to roost and to haunt it. the free market economy may be quite a potent force but if it is allowed to run unfettered and uncontrolled it could be a bull in a china shop and let loose forces that can engulf the economy and led it to ruin also. This is what is the view of Tim Geithner, the US Treasury Secretary. For instance it was a big mistake to have banks, and financial institutions get too big for their boots and not be regulated, leading to the sub-prime crisis and its aftermath. Also, having the banks as too big to fail means that the US economy has its hands tied behind its backs and having to give in to huge bailouts of institutions that have not lived up to ethical ideals.
There are encouraging signs however that Americans may have eased a little bit of their strings and are spending a bit more. But it is not enough to keep the wolf away from the door and there are still huge concerns on the employment front that may take years to clear up.
Tags: mistakes, US economy