The Financial Crisis and Economic Recession – A Simple Analogy and Distinction

[Median Democrat]

The financial credit crisis is akin to a poisonous, explosive gas leak in the building that is our global economy. Due to the inattention of the Bush administration, gas built up in that building to explosive levels. The past month or so has been the discovery of that gas leak, and the immediate response. If that gas leak were ignored, and there was a spark, the gas would have ignited and destroyed the building and the surrounding neighborhood. However, the government has taken the needed steps to air out the building, and reduce the risk of a devastating explosion.

The current state of the economy is the aftermath of the gas leak. Even though there was no explosion, everyone in that building that is our global economy has been sickened, and it will take time for them to recover. The building will need to be decontaminated, and the source of the gas leak will need to be repaired. This will take time, but it could have been much worse.