Black Friday? That is how thee news broadcasts started out this AM. The economic free fall continued in Asia and Europe after a brief rally overseas. I am afraid that there is nothing governments can do now except in effect suspend civil liberties and create an artificial economy. It will b e Totalitarianism not Socialism.
The alternative is to let natural economics run its course. Ultimately supply and demand will create a new base.
In the meantime, since the first of this year those who have had their savings and retirement funds in mutual funds, stocks, or other pension plans have lost over 40% of their resources. What for many would have been along with Social Security payments funds for a comfortable retirement may now find themselves without enough funds. Company pension plans are in danger despite Federal laws.
Business including local government and education can not go on as usual. In this budget process the bullet must be bitten.The budget must be "bare bones". Workloads strictly examined, and where one position's tasked can be added to the work load of one or two other persons then it should be done. Yes that means loss of jobs, but those who have lost half or more of trier own income should not have to support below efficiency programs.
There is a possible alternative.This is applicable to both the private and public sector. Employees must be willing to give up already negotiated raises and perhaps some benefits. Projects must be postponed. Communities must be able to grant a longer interest free period for tax payments.
I am no economic whiz, or I would have had all my savings in government bonds for the past 8 months, or even a month ago. Of course I could have buried gold bars and diamonds in my back yard, but did not even contemplate the magnitude of this collapse. I have no viable answers except hope to sweat it out.
In the meantime for the next three days I shall enjoy a visit by the younger great granddaughter.
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