Putting more money into the economy will help prevent bankrupsies and closed businesses. ---------------------------------------------- LKOLLLLOLLLLLOLLOLLLLLLL You have falling for the Socialist bullshit hook, line and sinker. "WE NEED THIS STIMULUS AND IF WE GET IT, UNEMPLOYMENT WILL NOT GO ABOVE 8%. " OBAMA I can post 1000 quotes from the ass clown along with his Financial Team that are dead wrong. And you are wrong.
And that's a good thing. No one in their right mind should believe that "stimulating" gov't employment and hiring people to dig and then re-fill ditches is a solution to huge problems in manufacturing, housing, regulations-and-unions-gone wild and other ills. ---------------------------------------- I agree MK. It's pure smoke and mirrors and illusions.
Let's not forget...Oh-Bomb-Ya ensured us that his Spendulous back in '08 would prevent the Unemployment Rate from ever exceeding 8%. Instead, the rate quickly breached 8% and has remained above that level for over 2 years. Why anyone would buy into this latest snake oil scheme is beyond me, but no one ever went broke underestimating the intelligence of the American public.
Its funny listening to dems talk about how we need another stimulus plan in order to fix our infrastructure. Wasnt the original 900 billion dollar stimulus plan supposed to go to that? Whoops sorry, I guess we messed up and blew that 900 billion, on handouts to our interest groups, just give us 300 billion more and this time, we promise will get it right. LOL, what a joke.
Under the current monetary system, the only solution is putting more money into the economy. Banks aren't lending sufficiently, therefore the govt has to put money into the economy to fill in the gap. Without money being created somewhere, money will be sucked out of the economy during the servicing of debts. The QE programs did not work because big banks are parking the money at the Fed rather than lending it out into the economy. Even if money is created, it has to be distributed properly. With the QE stimulus, it was not distributed properly. With Obama's tax breaks, money gets distributed more evenly.
Never ever trust a con man .Remember past actions/results. If you think he's trying to fix the damaged economy you are naive. Remember he did say that he was going to fundamentally change the U.S. ,but you misunderstood him thinking he was going to make politics a kinder gentler process. How's it working out for those of you that voted for him? There's and old saying that comes to mind. "Actions speak louder than words."
This is true. But the cunning play into a Ponzi scheme and get out before the con man decides to end the game. Just gotta know how to play the game with whatever card the con man throws at you.
so why would the stimulus encourage the banks to lend more? The banks do not want to lend because they know the assets are still far too overpriced and they do not expect to be able to prop them up with govt money forever. The govt money is a bank bailout. Additionally the banks are not lending to businesses because they know that all this stimulus is creating inflation. So why would they want to lend out money, when the money at these low rates. The govt needs to get the hell out of the economy. The economy will find a level... base and then we can rebuild. We need to restructure... not throw money out the window.
Obama's plan is a temporary one- its just slowing the inevitable. It looks like its primary directed towards businesses and the working class- not banks. Perhaps the reasoning behind it is, if the administration can give out money ($300 bil) and prevent defaults and get the working class to meet debt obligations/increase their spending, banks will increase their lending sensing a lower-risk credit environment.