What exactly did Obama do to stabilize the credit markets? Not sure if you are close on money velocity either. If velocity was normal then we would be worrying about inflation which we are not.
Tax cuts were one time hand outs, not sure people agree this helped in relation to it's cost. Bonus depreciation helps little with the slack we have in factory utilization.
Not saying that these things did not help at all. I am saying that there is room for disputing whether we got value for the $ 800 billion.
Honestly, it was more Ben then Obama. Fiscal policy generally is too slow. And money velocity now isn't near one, but it's better then what it was before.What exactly did Obama do to stabilize the credit markets? Not sure if you are close on money velocity either. If velocity was normal then we would be worrying about inflation which we are not.
The tax cuts I believe did help many people make it through the short run, especially as it went to paying bills. That alone is beneficial.Tax cuts were one time hand outs, not sure people agree this helped in relation to it's cost.
Sorta. Bonus depreciation simply moves demand from period 2 into period 1. By itself it cannot do much, but it in theory acts as a jump start. There is a difference though between Bush's and Obama's. Bush's was during an era where corporations were literally sitting on mountains of money. Quite literally mountains. Not so much the case today. Especially when many states don't allow bonus like they did in 2002. Quite literally the same text, but different environmental conditions. But it likely did help some.Bonus depreciation helps little with the slack we have in factory utilization.
Of course. But I think you as much as I know that there are few good, if any good tools for dealing with financial crisises, especially the liquidity related ones. Some people seem to think that all recessions are the same and all can be treated the same.Not saying that these things did not help at all. I am saying that there is room for disputing whether we got value for the $ 800 billion.
"If your opponent is of choleric temperament, seek to irritate him." - Sun Tzu
Last edited by texmaster; 06-20-10 at 12:44 AM.
Our Constitution was made only for a moral and religious people. It is wholly inadequate to the government of any other.
Originally Posted by MrVicchio
Yes because that was all I was talking about. And yes, the Gov't backed TARP and other economic gimmicks DID and ARE screwing things up. Short term save, long term damage. Way to go.
Because you say they are?
Stimulus Surprise: Companies Retrench When Government Spends — HBS Working Knowledge
Last edited by buck; 06-20-10 at 08:43 AM.
As long as the government will pay you not to find another job, and will extend those benefits - why bother?
“I think if Thomas Jefferson were looking down, the author of the Bill of Rights, on what’s being proposed here, he’d agree with it. He would agree that the First Amendment cannot be absolute.” - Chuck Schumer (D). Yet, Madison and Mason wrote the Bill of Rights, according to Sheila Jackson Lee, 400 years ago. Yup, it's a fact.
In Obama's mind what isn't the GOP responsible for? This is just another hack political comment made by the president.
Tired of elections being between the lesser of two evils.When the debate is lost, slander becomes the tool of the loser. -Socrates