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Politics : View from the Center and Left

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To: thames_sider who wrote (94517)11/7/2008 9:10:22 AM
From: Rarebird   of 541578
 
<<But without a bailout all three are likely to run out of money next year.>>

These companies should be allowed to fail in a true capitalistic economy and their failure would sow the seeds of success for their successors. Instead, these zombie companies are going to continue operating on the largesse of the taxpayer, putting a drag on society for a considerable period of time like Japan in the Nineties. Thus, the recovery stretches out further and further into the future, with very slow growth the top target of the government (avoiding negative growth and lost jobs is priority one). The US is going to be sliding deeper and deeper and will continue to be less and less of a destination for young, vibrant growth companies in the future. Right now, the stronger dollar is a sign of strength, but once the fifth wave rally is complete, it's going to be all over for the US as a destination for investment capital.
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