“Revenge of the Glut” was an article written by Paul Krugman for the New York Times. He gets down and dirty with the understanding of what really happened to our economy and how it wasn’t just the subprime lending in which played a factor in our fallen economy. Instead he explained in a speech given by Ben Bernake, a federal Reserve chairman four years ago who stated the problem lied in Asia. Bernake stated foreign assets were taken and capital was then sent to the rest of the world fairly cheap. And therefore the money went to America. So therefore the gloval saving glut as explained in the article was here in America and it was because of the clever financial markets keeping secrets of risks that could hurt our nation and also these people are con artists to other investors so they can keep themselves safe but leave America high and dry.
Therefore because the financial system was not regulated more capital inflow took place. Krugman is writing to everyone of what went wrong in America. I feel we are in world of money- fools. I also believe the stimulus package will not work, just the other day on Fox news it was stated wall street plunged again, this being after the package was signed. This change was not a good one. This is all a mess and there are too many stupid people trying to solve this. For example, everyone wants to believe our tax money is going to projects such as infrastructure to help their state to look better. Well not exactly instead millions of our tax money is going to Alabama grant project where research is being done of catfish's DNA. Evidently this production is worth $245 million annually.
All in All Krugman states our problem does not lie on one area instead multiple areas are involved and a miracle needs to come quickly and i input, before more of our tax money goes to something so inappropriate to our economy.
