The Economic Tide

I see that stocks are down again for the 3^rd straight day in row. Citigroup is also doing some major layoffs. All this while people are looking at Ben Bernake(the head of the Fed) and Secretary Henry Paulson ( the Treasury). They have made many efforts to stop the recession from happening. While I applaud there efforts and they will help some. What people need to realize is that is going to happen.

What we need to do is pretend that we built a sand castle on the beach.  Then we start seeing high tide coming in. Now, the castle is the US and the Tide is the economy will be our tide. Low tide equals good economy and booming in the market and jobs, and the consumers are happy, even in the housing market. However every once and a while high tide comes in. The closer the tide to the castle the worse it is for the economy. If the Tide Comes as a tide wave that would be a recession.  Some of the thing things that Bernake and Paulson have introduced have done would be considered digging a small mote around the castle. As we all know with the tide getting to high that won't make a difference.

The good news is that with each high tide comes low tide and while I think are castle might see a little moisture from the tide getting so close. Bernake told Congress that our economy will pick up by the end of 2008 and Paulson agreed. So obviously understand the concept while maybe not put this simple. So, I feel that the US is far enough up on the beach to survive. I also think that the low tide (good for us) will be back in towards the end of the year. Small side note, usually a one major banking system will fall before the low tide rolls in. Sorry Citigroup.