Diesel_dyk wrote:
there is a lot of talk about making a bad bank, owned by the government, to buy up the bad assets and act as a toilet for the system. I think that's is a lot of bunk. and giving banks any money is a lot of BS too.
To get the economy going the government should take the money it wants to give to banks and make one good bank owned by the government. The billions of dollars it threw out the window already would have made for a nice deposit from which to lend. The fraction reserve system would have amplified the amount of money in the system. As for the banks like citibank and the others, they should be left to survive on their own. Create one good bank, and let others fail and the market will clear itself... after all why should ewe let these ban ks with their failed policies drag every one else down, they are the ones who caused the problems in the first place let them fail and make them compete against a governemnt run good bank.
After the economy recovers, the government could spin off the good bank with an IPO and make a bundle.
On the stimulus package,
1. mega infrastructure like nuclear plants and mass transit in every sizable city, and modernize the power grid
2. give the money to the poor, they will spend it for sure, for every $1 going to poor, we get back $1.70 on the mulitplier. If it goes to ritchie rich tax breaks we only get back $1.30.
3. burn every supply side economic text book in the country, ban its teaching in every school and university... supply side economics = supply control = price fixing = broken markets = bubble creation = massive economic distruption
I guess wwe stand on different sides:
I think the government can do a lot to help stimulate the economy. The first would be let'er go. Stop trying to fix it. It has to find it's bottom.
Next, all these spending programs are not a good idea. They are a temporary fix at best. There is no long term growth. What happens when the lawn at the white house gets done (just one simple example of many)? Where do the workers go? I know, we put more lawns in with tax money. See the cycle?
True economic growth comes from businesses of all sizes doing well. How do you stimulate growth in business? 2 options: Lower taxes or give people money to spend on buying things. I am not a believer in giving money to people to spend on things. I feel the best way is for government to shrink it's spending and take the hit on revenue by lowering taxes.
"The President does not have power under the Constitution to unilaterally authorize a military attack in a situation that does not involve stopping an actual or imminent threat to the nation" - Barack Obama (a freshman senator from Illinios)
