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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (104766)	9/2/2009 4:55:50 PM
From: Hawkmoon	1 Recommendation Read Replies (2) \| Respond to of 110194

Assuming we are not stupid enough to attempt this, consumers and businesses must now pay for both today's consumption and investment and the debt which financed yesterday's consumption. Yes.. and that will prove rather difficult if people are losing their jobs. Therefore, this is the point where the government has a role in providing employment and/or re-training opportunities for displaced workers. The question is what form of employment this this take. Infrastructure is an obvious choice, given that much of this country's essential transportation and utility services are woefully inadequate. But we also must look for future technologies that will yield economic productivity, as well as secure our domestic ability to provide economic resources. I'm not particularly sold on alternative energy solutions that are "part-time" solutions, but I do think there are many other alternative energy prospects that provide long-lasting renewable solutions. I also think we need to focus upon advancing our space exploration. Giving this economy a technological challenge to meet, but is currently too expensive for the private market to justify, can yield future economic productivity. We can also invest in material sciences that improve the quality and utility of existing materials (nanotech.. etc). But throwing money at banks when they are adverse to lending in a deflationary market (collateral depreciation) is not the solution. We must work on the demand and production side of the equation in order to get our people back to work (improving consumer psychology) and laying the groundwork for future technologies (productive capacity). Of course, this is all biased on my premise that economic systems exist to serve the needs of the people, not the other way around. I don't mind people getting wealthy based upon creating new technologies, but when we're seeing a transfer of wealth from the producers to the financiers, we really need to rethink what our country is all about. I still seem inclined to believe that Obama's Trillion dollar stimulus would have been better spent providing tax credits to companies that kept their employees working. It would provide a temporary labor cost relief and assist J6P in paying off his bills. Hawk