[quote=jstoesz]I am not convinced you will get the same point. Ripping the band aid off quick bankrupts certain companies that are cash poor, while ripping it off real slow bankrupts companies that are unfavored by government policies. In either case we may return to the same GDP level, but more than likely one route will result in a higher GDP.
I and most of you all are of the position that even if it hurts like hell, it is better to rip it off quick. That allows the healthy unleveraged companies to survive on their cash short term and come out with a thinned heard of competition. Long term we will have a healthier more robust economy.
Our current path has resulted in many healthy companies sinking because the recession has lasted so long. We are left with more zombie companies that are subsisting on government cheese. Instead of coming out of the downturn storger, we will be a shadow of our old self.[/quote]
BINGO!!!!!
Dragging this out only means that they are taking the healthy entities/people down with the weak ones. What they are doing is going to cause MORE pain in the long run, and they will run up our deficits to levels that are entirely unsustainable in the process (already done, really).
It is the DURATION of the downturn that will cause the most pain, not the depth.
