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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (102396)	1/29/2009 5:29:47 PM
From: cosmicforce	Respond to of 541849

<only one prize per family > Yeah, that might be difficult to establish, but it could be IRS filing status or whatever [approximately, four million families]... It was really just a hypothetical to show how much money we are talking about . I'm assuming just 4 people or so per family unit as an average in my back of the envelope calculation. The point I was making is when you sink the bailout it into bank debt/equity purchases, it is very unlikely to increase the Velocity of Money in the larger economy, which is, IMO, what is needed. Dropping it into checks to individuals with the proviso that they must spend it within 60 days would probably work. Some people might buy something, return it, and put the money in the bank, but that probably wouldn't be the typical response. One thousand dollars is not the same to most people if provided in chunks versus dribbles to them (as in lower tax rates showing up 1/52 per week). If the bank down the street is twice as solvent, it doesn't really motivate most people to spend. Cross-ref: Message 25365787