if we must have tax cuts, then favoring the poor only steers the benefits toward quick spending, since the poor are more needy to cover daily expenses
the wealthy would (in the right climate) be more likely to build a new business or invest further in a current business, which would keep the jobs treadmill rolling and spinning
no way out, Scooter
liquidations are necessary, and many will be hurt
including people who are owed in acct receivables
liquidations have ripple effects, as we are sadly seeing on a larger macro scale now with entire businesses (e.g. WCom, Enron) and their suppliers, or entire nations (e.g. Argentina) and their partners
IT IS THE RIPPLE LIQUIDATION EFFECTS THAT KEEP THE PROCESS GOING, RENDERING ALL USGOVT REACTIONS AS FUTILE !!!
my first paragraph assumed mindless quick fix Keynesian Moronic SameOldSameOld shitfixes
my second paragraph addressed the greater need
if we only have quick Keynesian shitfixes, then we will need one each and every year until 2010
with nothing much cleansed from balance sheets
that is what I expect
political forces ensure that huge pressures are exerted on leaders to DO SOMETHING!!!
but the urgent SOMETHING is to shortcircuit the liquidation processes
thus, no recovery
imagine 100 men & women standing
the requirement is for 10 of them to die
the process unfettered would select those unfortunate 10
but politics dictates that all be assisted
so only 2 die, and consequently the rest suffer from poor health
each year 2 can die, instead of 10 over eighteen months
sadly if only 2 die, then little is fixed
so after a few years of seeing 2 die, others destined for gallows consideration join to replace the dead, replenishing the chosen 100
while some of the original 100 might be infected by a saved member
another analogy, a leg has developed gangrene
politics dictates that you must save the leg
but you know it must be amputated
so you carve out a small piece of wretched tissue
but adjoining areas become infected, thwarting efforts
eventually not only the leg is lost, but more body parts
one can die of improperly treated gangrene
I wonder if a USGovt stimulus plan based on a $10,000 gift to start anew following declaration of bankruptcy might work to some pathetic extent
instead, they are tightening BK laws
I expect the major league socialist movement soon will be to save the REAL ESTATE sector from slomo implosion
I sincerely expect slomo implosion as jobs and stagnation increase, as well as interest rates increase (altho slowly)
wait until the imported inflation joins with commodity inflation!!!
a falling USDollar will mean higher imported supply costs
then rates rise primarily on the longend
and contradict a hapless Federal Reserve Policy
thus producing a steepening of the YIELD CURVE
complicated stuff, has me challenged more than at any time in my professional life
/ jim |
