Economy

This is a summary of an article originally written and posted by Charles Cooper on Tuesday, January 13, 2009- ABC Small Business Blog

Insanity: Doing the same thing over and over again and expecting different results.
— Albert Einstein

What he is saying is that for Action X there is Result A and that you can perform Action X a million times and you will always get Result A

Obama's team said it was considering setting up a government-run bank, or possibly banks, to acquire bad assets clogging the financial system and which are blocking new lending.

Disinflation and deflation are sometimes inadvertently lumped together. The first means a slower pace of inflation (that is, prices are still rising), while the second means an outright decline in the price level.

While many cash-strapped Americans would welcome paying less for what they need to buy-deflation has become the No. 1 fear of a growing number of economists, who worry that lower prices will further hurt the economy. Rarely has the potential for lower prices been so scary.

It's hard to believe that oil is now trading below US$36 per barrel, because it hit $145 less than six months ago. In 2007, OPEC has an opportunity to at least slow, if not to reverse the steady rise of oil prices, which were then testing at $90.

“The cornucopia life style in the US ends definitively in 2009. Words like outage, shortfall,deficit, scarcity, and rationing will enter our collective lexicon, and our lives will get much leaner by year’s end. This is the year that all the glitz, fluff, and frivolous nonsense in the economy withers and dies.” The Nattering Nabob