Since I study world economics every day during the week, a friend of mine called and asked me to explain what is really happening in the world. I said,"It is like driving down the freeway at 70 miles per hour and having all 4 wheels come off at once. You have no control because you can't steer. You don't know if you are going to hit a cement bulkhead etc. Then if you survive you call a tow truck to take you back to the shop where you hope the front spindles haven't been destroyed so you can buy and put on new wheels."
That is what happened this weekend to our nation. So our world economy survived the wheels coming off and all the sparks and we didn't hit a cement bulkhead or any other car swerving to miss us on the freeway. And the 700 billion just calls the tow truck and gets us into the shop but it doesn't buy a mechanic to work on the car and it doesn't fix the ground down wheels and it doesn't fix the wheels and it doesn't buy the wheels.
In order to fix the car and the wheels and to pay the mechanic the government would have had to issue fixed loans to all the people who can still afford one and still have a job and who are willing to keep paying for a house that has lost 25% or more of its value.
Until this last piece is fixed the car is in the shop and nobody died but it doesn't run.
My wife says who liked the analogy says this is too cynical. She says the 700 billion got the car on the road but left the driver without gas to run his car.
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