[quote=briansd1]CA renter, I really don’t follow your logic.
Nearly all portfolios were affected by the financial crisis.
As you say, governments spent based on bubble projection, now is the time to spend based on recession projections.
Allan is right. Governments promised too much and can’t pay the benefits.
What do you propose other than raising taxes?
Cut employee pay and benefits and/or cut services. Those are really the only solutions.[/quote]
Brian,
There are a few things I would do, but before touching any of the employees’ benefits, I would do everything in my power to prosecute everyone who was responsible for the bubble(s) and its aftermath. I would claw-back all gains made by these crooks, and search all around the world for any off-shore assets, which they would forfeit as restitution to those they damaged.
Unlike you, I do not think we needed to bail out any banks. We DID need to backstop the FDIC, NCUA, SIPC, PBGC, (some others?), and we DID need to enact some sort of WPA-type program to deal with the extreme unemployment, but we could have done a lot of good WRT our infrastructure, healthcare, and energy R&D, IMHO.
The government could have nationalized the banks and provided any credit needed for businesses and other *productive* (not consumption) borrowing needs.
After every penny is wrung from the theives who caused the crisis, I would then negotiate with the unions. Those who caused the damage need to take the first loss. Anything else is not politically or morally acceptable.
