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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: combjelly who wrote (751960)	11/9/2013 6:14:56 PM
From: mel221	1 Recommendation Recommended By FJB Read Replies (1) \| Respond to of 1576984

>> A couple of things here. For one, much of that money went to shore up banking, not a lot has been going into the actual economy. This is Keynesian economics. You can dig holes and fill them back up and grow the economy... according to Keynes, Krugman and other supporters. Nothing is more inefficient than digging holes and filling them in. $2T from the Fed is being run through the banks and is supporting asset prices. That is stimulus, so says Bernanke. $6T is fiscal stimulus and has nothing to do with the banks. Fiscal stimulus is as efficient as it gets. But as Koan has pointed out, Obama has directed much of the fiscal stimulus money to the plutocrats. $8T over 5 years is clearly not enough stimulus... the Fed cannot even talk about tapering. But hey, since your here... answer the question no liberal or Keynesian will dare answer. How much more stimulus over what time frame? Is $100T spent over 4 years sufficient?

To: combjelly who wrote (751960)	11/9/2013 9:28:57 PM
From: Jorj X Mckie	6 Recommendations Recommended By FJB gamesmistress mel221 THE WATSONYOUTH TideGlider and 1 more member Respond to of 1576984

Right now the biggest drag on the economy is tight credit. tight credit? are you kidding? Interest rates are exceptionally low. That's clear indication that credit is anything but tight. There is tons of money out there waiting to be borrowed. The problem is that debt levels are still too high. There is no demand for money. It's kind of like offering someone a big ole 22oz medium rare NY steak after they just ate two double cheeseburgers and chili cheese fries. No matter how tasty that steak looks, they still can't eat another bite. And what caused this situation? Well...what happens when the government coerces lending institutions into giving loans to people who can't afford them? The problem is not tight credit. It is that the excesses of the dotcom boom were never allowed to be normalized before the government stepped in and created the RE/Credit bubble. You'll see more lending when the economy recovers. And it won't recover as long as artificial stimuli are applied to the market that sabotage the natural economic processes. The economy would have recovered by now if the government hadn't stepped in and tried to stop the economic correction. We'll probably be in a Japan-like economic stagnation for the next 20 years because of the government meddling.