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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Dan3 who wrote (86832)	9/26/2008 5:56:33 PM
From: jmiller099	Read Replies (1) \| Respond to of 116555

The proposal you mentioned would give the lenders cash by virtue of paying back debts. Then they'd probably feel more comfortable to loan against this new cash. The problem will then cycle around again at a later date. Ron Paul is a man who I admire and share view on this topic. The root problem is that America (and citizens) are borrowing to spend more than we produce. That's the thing that has to change. We are not going to get anywhere by giving money to borrowers or lenders. Financials and debt should not be the drivers of the economy. It is just an impossibility for health and vibrance. Financials are not producers. They are the grease in the machine that allows for smooth functioning and are a percentage cost of doing business by commission toke. Borrowers and spenders are MAINLY buying things that are not produced here. Again, the retail and transport are a percentage of the transaction, but not the real value-add. If you eliminate their debts via taxpayer dollars, they will run themselves into that situation again.