14 years ago
Anonymous
How Much Stimulus Does The Economy Needs?
Every week, the Bush administration and governments around the world are promissing a new stimulus package, lending, money injection, rates drop etc.
And the economy is continuing to fall.
I'm beginning to think that maby they should just shut up and stop trying to "help", LOL !
14 years ago
mommanuke
Favorite Answer
You're right. They should stop. There is a very serious correction coming and these bandaids merely delay dealing with it, and will make it more difficult when it comes. The only way our economy has remained "strong" is by supporting it with imaginary money, both from the government and individuals. What they are currently doing is printing more money that doesn't exist to artificially support the economy. The fiction is starting to show, which is why the economy continues to tank.
1
14 years ago
Griggnax
Nobody knows. Even the original figure of $700 billion was just plucked out of thin air. Paulson said they needed "a really big number".
Maybe they should consider allowing some of those banks and companies to actually fail. Sometimes a recession right now can lead to a stronger economy in the long run.
1