If we take September 30, 2007 as a reference point, the national debt was $9.00 trillion. It will most likely be between $11 and $12 trillion at the end of this year, taking into account the bailout and stimulus.Originally Posted by Reverend_Hellh0und
Why?Originally Posted by Reverend_Hellh0und
I don't understand your analogy. Has the US government ever defaulted on its debts?Originally Posted by Reverend_Hellh0und
In an ordinary recession, sure. A severe recession that has the potential to turn into a depression is not the time to be testing that idea.Originally Posted by Reverend_Hellh0und
"Throwing money" at the financial sector is absolutely vital to stimulating the economy. If the credit markets grind to a halt, businesses no longer have any money to do anything. The market might correct itself but it would take years and years, and meanwhile we would have a fullblown depression on our hands. This is not a situation where a couple of banks made some stupid decisions and should suffer the consequences; this is much more systemic. When nearly every single financial institution is on the verge of collapse, the government must take action.Originally Posted by Reverend_Hellh0und
However, you are correct that bailouts of automotive companies or pork projects do little to stimulate the economy.
Uhh Obama is most likely going to raise taxes anyway as soon as the economy recovers, as he should.Originally Posted by Reverend_Hellh0und