There is a lot of hype over the economy these days. Some confirm that it’s horrible, some say it isn’t too bad (incorrect and in the minority).
Fortunately, the government seems to be thinking twice about propping-up the financial markets. Good for them, although I have faith that dollars will win and a bailout will happen. It really ticks me off that the government is willing to go into more debt to salvage private business. Sounds dangerously close to communism to me, but I’m only a high school graduate, what do I know.
I was going to avoid this discussion altogether until I came across this quote from CNN.com:
“Credit is the mother’s milk of the modern economy. The tighter the credit spigot closes, the worse the economy is going to be,” said Mark Zandi, chief economist of Moody’s Economy.com. “Businesses operate on credit. If they can’t raise money, then very soon they won’t be making payroll.”
I take issue with the whole bit, but especially ‘Businesses operate on credit.‘ If that is truly the case, then they are in far worse shape than anyone realizes. A company should not be depending on credit to make payroll.
