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


To: clochard who wrote (108862)6/26/2010 11:11:52 AM
From: Hawkmoon  Respond to of 110194
 
Anything useful (well built houses, railroads, sewers, hospitals) is worthy of credit and therefore monetary expansion

Within reason, I would agree. Overbuild anything and we waste resources (like building a sewage plant for 1 million people for a town of 100,000).

One thing I really criticize is how we build and maintain our roads. We build them in such a manner that they require constant maintenance. That means that they require a permanent staff of public maintenance workers to repair the ruts, fill the pot-holes, and repave the surface.

fhwa.dot.gov

Upfront costs are obviously more, but the savings in maintenance over the long-term would yield savings.

Additionally, providing government incentives to private industry to develop a wide spectrum of productivity enhancing technologies can prime the economic pump and lead to greater ROI later on.

That's how government stimulus money should be spent, IMO... To encourage long-term investment when the private sector is hunkering down and refusing to take risk.

Hawk