Some of what the article says is true, some is false, and ALL of it dates back to May 2006.
It mentions as worrisome the fact that the U.S. Federal Reserve had been raising the interest rates. Now, the Federal Reserve has been lowering the
The tax cuts have had the opposite effect. The Bush tax cuts, although a smaller percentage for the wealthy than for those who earn less, nonetheless
freed up money which employers used to expand their businesses and hire more people. More economic activity meant more tax revenues coming in. When
income taxes are so high as to discourage economic activity, tax revenues go down. If the high taxes are reduced, encouraging business expansion,
more taxes come in. This happened under the Kennedy tax cuts, the Reagen tax cuts, and the Bush tax cuts.
Unfortunately, the increases in spending (for security, for Iraq and Afghanistan, for disaster relief, and for other projects and foreign aide) have
kept the budget deficit high in spite of the increased income. The recent dramatic fall of the U.S. dollar is tied mainly to the many defaults in the
mortgage market, due to risky sub-prime loans, especially adjustable rate mortgages. Some in the government are inclined to force the banks to accept
lower interest rates than the contracts call for, which means that the banks and their stockholders will be hurt financially, and new housing starts
are being hurt because banks that are already holding bad loans cannot loan out that money to pay for new homes. This means all the construction
workers and industries are hurt, which puts pressure toward weakening the economy. The value of existing homes has declined, because fewer people now
qualify for mortgage loans.