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August 11, 2010 at 12:41 PM #590470August 11, 2010 at 12:46 PM #589429EugeneParticipant
[quote]eg, if it buys Treasuries, that gives new money to the govt which then spends it into the economy[/quote]
It does not matter how much money the Fed is going to spend buying Treasuries, if the government is not willing to spend that money. The evidence so far is that every billion dollars of additional government spending has to face an uphill battle in the Congress. Come November, Democrats will probably lose 6 to 8 seats in the Senate and we can forget about any additional stimulus.
The only mechanism that has any hope of being effective is to lower the 30-year mortgage another half a per cent, that way homeowners will keep refinancing, freeing up some disposable income in the private sector. That and the hope of inherent resilience of the economy.
August 11, 2010 at 12:46 PM #589523EugeneParticipant[quote]eg, if it buys Treasuries, that gives new money to the govt which then spends it into the economy[/quote]
It does not matter how much money the Fed is going to spend buying Treasuries, if the government is not willing to spend that money. The evidence so far is that every billion dollars of additional government spending has to face an uphill battle in the Congress. Come November, Democrats will probably lose 6 to 8 seats in the Senate and we can forget about any additional stimulus.
The only mechanism that has any hope of being effective is to lower the 30-year mortgage another half a per cent, that way homeowners will keep refinancing, freeing up some disposable income in the private sector. That and the hope of inherent resilience of the economy.
August 11, 2010 at 12:46 PM #590058EugeneParticipant[quote]eg, if it buys Treasuries, that gives new money to the govt which then spends it into the economy[/quote]
It does not matter how much money the Fed is going to spend buying Treasuries, if the government is not willing to spend that money. The evidence so far is that every billion dollars of additional government spending has to face an uphill battle in the Congress. Come November, Democrats will probably lose 6 to 8 seats in the Senate and we can forget about any additional stimulus.
The only mechanism that has any hope of being effective is to lower the 30-year mortgage another half a per cent, that way homeowners will keep refinancing, freeing up some disposable income in the private sector. That and the hope of inherent resilience of the economy.
August 11, 2010 at 12:46 PM #590166EugeneParticipant[quote]eg, if it buys Treasuries, that gives new money to the govt which then spends it into the economy[/quote]
It does not matter how much money the Fed is going to spend buying Treasuries, if the government is not willing to spend that money. The evidence so far is that every billion dollars of additional government spending has to face an uphill battle in the Congress. Come November, Democrats will probably lose 6 to 8 seats in the Senate and we can forget about any additional stimulus.
The only mechanism that has any hope of being effective is to lower the 30-year mortgage another half a per cent, that way homeowners will keep refinancing, freeing up some disposable income in the private sector. That and the hope of inherent resilience of the economy.
August 11, 2010 at 12:46 PM #590475EugeneParticipant[quote]eg, if it buys Treasuries, that gives new money to the govt which then spends it into the economy[/quote]
It does not matter how much money the Fed is going to spend buying Treasuries, if the government is not willing to spend that money. The evidence so far is that every billion dollars of additional government spending has to face an uphill battle in the Congress. Come November, Democrats will probably lose 6 to 8 seats in the Senate and we can forget about any additional stimulus.
The only mechanism that has any hope of being effective is to lower the 30-year mortgage another half a per cent, that way homeowners will keep refinancing, freeing up some disposable income in the private sector. That and the hope of inherent resilience of the economy.
August 11, 2010 at 12:48 PM #589434ArrayaParticipantGood point, Eugene. I agree, a shift in congress will lead to a battle to stimulate. Though, it will be a political nightmare for the Rs if we start shedding jobs again.
August 11, 2010 at 12:48 PM #589527ArrayaParticipantGood point, Eugene. I agree, a shift in congress will lead to a battle to stimulate. Though, it will be a political nightmare for the Rs if we start shedding jobs again.
August 11, 2010 at 12:48 PM #590063ArrayaParticipantGood point, Eugene. I agree, a shift in congress will lead to a battle to stimulate. Though, it will be a political nightmare for the Rs if we start shedding jobs again.
August 11, 2010 at 12:48 PM #590171ArrayaParticipantGood point, Eugene. I agree, a shift in congress will lead to a battle to stimulate. Though, it will be a political nightmare for the Rs if we start shedding jobs again.
August 11, 2010 at 12:48 PM #590480ArrayaParticipantGood point, Eugene. I agree, a shift in congress will lead to a battle to stimulate. Though, it will be a political nightmare for the Rs if we start shedding jobs again.
August 11, 2010 at 1:43 PM #589474Nor-LA-SD-guyParticipantThis will not make me popular on this board but.
I think the only way to get the economy moving again is to get home prices back at peak pricing,
So how do they do that ?? who knows …I don’t think anyone has the answer, me I would start by announcing that we were going to double the minimum wage over the next six months, then follow through, not that this would be fair or not lead to other problems but nothing is going to work until we are back at peak pricing.
There is no other way to unfreeze and collect enough taxes to get everything moving again.,August 11, 2010 at 1:43 PM #589568Nor-LA-SD-guyParticipantThis will not make me popular on this board but.
I think the only way to get the economy moving again is to get home prices back at peak pricing,
So how do they do that ?? who knows …I don’t think anyone has the answer, me I would start by announcing that we were going to double the minimum wage over the next six months, then follow through, not that this would be fair or not lead to other problems but nothing is going to work until we are back at peak pricing.
There is no other way to unfreeze and collect enough taxes to get everything moving again.,August 11, 2010 at 1:43 PM #590103Nor-LA-SD-guyParticipantThis will not make me popular on this board but.
I think the only way to get the economy moving again is to get home prices back at peak pricing,
So how do they do that ?? who knows …I don’t think anyone has the answer, me I would start by announcing that we were going to double the minimum wage over the next six months, then follow through, not that this would be fair or not lead to other problems but nothing is going to work until we are back at peak pricing.
There is no other way to unfreeze and collect enough taxes to get everything moving again.,August 11, 2010 at 1:43 PM #590211Nor-LA-SD-guyParticipantThis will not make me popular on this board but.
I think the only way to get the economy moving again is to get home prices back at peak pricing,
So how do they do that ?? who knows …I don’t think anyone has the answer, me I would start by announcing that we were going to double the minimum wage over the next six months, then follow through, not that this would be fair or not lead to other problems but nothing is going to work until we are back at peak pricing.
There is no other way to unfreeze and collect enough taxes to get everything moving again., -
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