I guess propping up is better than no help at all. The Fed says it will prop up the economy, and things should be better in 2011:
JACKSON HOLE, Wyo. — The Federal Reserve chairman, Ben S. Bernanke, said Friday that the central bank was determined to prevent the economy from slipping into a cycle of falling prices, even as he emphasized that he believed growth would continue in the second half of the year, “albeit at a relatively modest pace.”
So things are looking up, unless you listen to people like James Howard Kunstler who say that we’ve peaked and the new normal is going to be scaled way back from the kind of luxuries we enjoy now.
KUNSTLER: The peak-oil problem means that we can no longer expect to run an economy based on never-ending growth, which means ultimately that we can’t service our debts at any level — personal, corporate, governmental. We’re comprehensively broke. The securitization of mortgages was one of the so-called products that allowed the financial industry to swell from around 8 percent of our economy thirty years ago to over 20 percent just before the crash of 2008.
The commercial-real-estate sector, which accessorizes the suburban-development pattern by providing strip malls and big-box stores near suburban neighborhoods, is now imploding, as well. Unfortunately in the last several decades we’ve gotten rid of our manufacturing economy and replaced it, not with a postindustrial economy or an information economy or any of these other bullshit economies we think we created, but with a suburban-sprawl-building economy. We built more suburban tract houses, more strip malls, more highways, and more chain stores. That system has now entered a state of terminal decline.
Sometimes it’s hard to know who to believe.