Comments on: Reasons to Abstain From Further Keynesian Stimulus. (Do it For the Children)

By: Repair_Man_Jack

Repair_Man_Jack — Tue, 14 Jul 2009 11:14:54 +0000

An investment banker named J. Kyle Bass wrote a letter to his shareholders at Hymmen Investors which pretty mush sums up our current economic status. At one point he opines. "The Beatings Will Continue Until Morale Improves." At anpother point he makes the statement that there is no cure except to just go through it. That we need a Darwinian Flush so that we can all come through this mess stronger on the other side.

With interest rates already at zero, and tax rates too high, but not high enough to keep up with the spending freight train, no sane options are left on the table except for either A) Reduce the '$%(#*%&$&" spending! or B) Suck it up and tie your guts to your shirt.

By: izoneguy

izoneguy — Tue, 14 Jul 2009 05:58:47 +0000

then putting a Marxist in charge of a capitalist system….

Actually Presidents have no business getting so heavily involved in business. I read somewhere that it will cost the American taxpayers
$2 Million for every GM job “saved”. It would have been cheaper to pay each GM worker One Million dollars and tell them to get lost. Since when does being part of the union mean you have won the lottery?

By: aesthete

aesthete — Tue, 14 Jul 2009 05:43:13 +0000

At this point, if we have to use something out of the Keynesian toolbox, tax cuts seem like the best of a bad lot of fiscal policy tools, if the government really feels the need to do something. At least then, there would likely be some increase in foreign investment, and more breathing room for businesses and consumers, though I’d still be pessimistic as to results, and, as with all fiscal policy, it would take some time for it to work.

At any rate, thanks for the update. What’s your opinion on monetary solutions? I don’t see a ton of options there, but it’d be nice to hear your thoughts on them.