[quote=jpinpb]FormerSanDiegan – the reason why I don’t completely agree w/your comments is b/c the banks/lenders, although not receiving money on the note, are still being compensated by the government, I mean the taxpayers.
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The banks still took huge losses. 140 banks closed their doors in 2009, so their lending went to zero. Lack of available funds for lending shrunk across the board. Loans for businesses dry up.
Lenders, real estate and construction jobs were reduced/eliminated due to people not paying their mortgage.
How could the net effect be positive ?
Now, top it off with the taxpayer now having less after tax dollars to spend. The net result is negative.
Example:
Suppose there is an increase in theft in the city of San Diego. The thieves now have extra money to spend on TVs, electronics, booze, crack, or other consumer goods. This is good for the economy, right ?
Mr. Jackson’s analysis only looks at one side of the equation.
