Would it be better if the government sought to stabilize interest rates at 5% (a general goal), or is it better to change the rates willy nilly? Is it better for people to know where they stand or is it impossible given the large number of economic events that remain out of our control?

I was against the federal stimulus package and posted Fund roads & bridges NOT mad money stimulus and later Serious Money: Stimulate productivity not consumption contesting the federal governments economic approach, or lack thereof, under the current administration (White House and Congress) and this thought came to mind along similar lines.

All of the interest rate manipulations of the past dozen years have overheated and slapped our economy around. Adding to that the funding of the war effort and the price of food and energy means that almost every American household has been left in a quandary.

The government seems to be very bad at planning, and slow to react, or at least perceive a coming storm. They do appear reactionary at best and everyone cheers when they find a way to stave off disaster for one more day. That is the case today as they take over IndyMac Bank (NYSE: IMB) and bail out Fannie Mae and Freddie Mac.