They knew the bailout couldn't work...

Discussion in 'Economics' started by gastropod, Nov 8, 2008.

  1. The data has been there all is an updated pdf/"database" from the IMF that tells it all. On page 6 of the pdf - it says that empirical evidence shows that bailouts don't work and just end up burdening tax payers and worsening the credit crisis...
  2. That's what I've been saying, the bailout(s) will only serve to increase volatility. I happen to like volatility so you don't see me complaining... governments are typically political disasters. I think the current admin will be a disaster.
  3. It goes both ways. The booms are a function of economic policy, and the busts are inevitable. Without supporting economic policy, the busts still happen and are even more damaging.

    Unless you are going to provide a quantitative analysis of why intervention is so much worse than no intervention, your comment isn't even worth making.
  4. ipatent


    They prolong the inevitable but make the end result worse.
  5. hawk24


    agreed. This thing is gonna blow sooner or later.
  6. Increasing cash at banks might prevent a credit crisis but to stimulate the economy The Government might need to spend money and create jobs. I wonder what The Government might spend money on.

    Maybe replace bridges, build a new World Trade Center, or build hydrogen fuel stations along every highway?

    And these spending projects might be in addition to the US $ 700 billion bailout.
  7. hawk24


    what money? pretty soon we are gonna be saying the phrase "not worth a dollar."