Ummm, I just explained the "so" to you. Fed bailouts = taxpayers paying for it Do you still like Fed bailouts?
james M, if I confiscate your farm from you, and then when I finally give you back that farm, don't give you all the profits that normally should have come from that farm, I have incurred a cost to you. I can still make some "profit" on the farm while still "losing your money". Now do you understand??
That's how dollars work. If the Fed prints more dollars without expanding Reserve Assets accordingly, it causes inflation. That's, in a way, because they could never sell all those assets back for the same amount of money they bought them, had it not been for the amount of devaluation there had been in the unit money.
James M, provide a simple mathematical (or logical) argument for why a bailout saves the economy. How does spending money end up saving more money in the economy than that bailout cost? What fundamental reason is there that a bailout would prevent a worldwide recession? You're just taking that money from people to give to other people, isn't that true?
I hate to admit it because i do lean "conservative" but P. M. Barack Obama and the team that he chose to deal with the economic crisis that he faced in 2009 when he took over.......... worked out pretty good. Some members of the G.O.P. have ideas that are so silly that they could well have caused the following to have happened if they had gained power back in 2008?! AND..... GRACIAS A DIOS THAT HE STOPPED HILLARY!!!!!!!!!!!!!!!!!!!!!!!!!!! https://www.near-death.com/experiences/exceptional/howard-storm.html#a04
I heard that government during the 1929-1933 crisis grantees the home loans. And it was profitable too. Rewarding the same people create 2007 crisis with a large sum of taxpayers money to use it to reward their failure with huge bounces is a crab.
I do understand what I wrote. But I can't convince everybody and this is normal. You are looking for an argument and that is what you are getting.
Upon entering office, Obama was confronted with the fact that the SubPrime Loans were heading for a BIG money-hole to nowhere. What did he do? He had at the time a Dem HofR and was able to convince the Replicant Senate to pass the ARRA-bill, which was (yes) close to $800B. Did it work? Yes, it did. From here: So, what's your excuse for the fact that the Replicants, having been elected in control of the HofR in 2009, refused all further funding beyond ARRA? Note what happened to the Employment to population Ratio (from the BLS) here. From 2010 onward no further spending assured that NO NEW JOBS WERE CREATED IN THE ECONOMY! And why? Ask your friends who controlled the HofR funding mechanism! They stymied all further spending in order to maintain high-unemployment in hopes the 2012 election would boot Obama out of office. Didn't work, did it ... !
I was kind of joking That said.... i guess the reporting is available, but swamped into insignificance by a general preference for answers that are simpler and more expedient to reinforce partisan preconceptions
A little Econ 101 for you. If govt spending created jobs we would never have a jobs or wage shortage since govt can always spend money. In fact, billions of jobs from Stone Age forward were created by new inventions, not new govt spending. Are you a conservative now that you've learned this basic point?
If spending ended recessions we would never have recessions. 1+1=2. In fact, it makes them worse by interfering with free market. Don't forget what a recession is: the time it takes the free market to correct the affect of govt interference. Now you also know why capitalism works and socialism does not!! Now are you a conservative too?
The Stim. package only helped the BANKS that were on the verge of collapse. Fractional Reserve banking at its best. Our system is a complete dissaster and no one with an education can think anything different. That is unless they are paid to say so. Which, there are over 30 think tanks that pummel the online community with (TRUTH NEWS) that is a fabricated lie and told as the truth. CPI = 1% forever. Well of course it does, you remove all the things that are real inflation and feed the public BS. Only real banking that happened in this country ended in 1972 when Nixon took us off of the GOLD Standard. All Money (fiat) was backed by GOLD, thus you could not just print it and hand it out. Right now, if Mnuchin wanted he could go down to any Mint, tell them to print off 1B in fresh currency and do whatever he wants with it. Yet, you have nothing and will continue to pretend that you care about THING on the news, the things they lead you to believe. You either lean right or left. In the end, it is just a financial game for them to load their pockets and force you broke, and that is where 99.94% of us are headed. If this continues, which it will under republican and democratic(biden/clinton/pelosi) type of rule, we will have a depression. No one cares or believes it until it hits, then they feel stupid for not preparing. Timing, saving, how you save, etc. will separate you from the sheeple!
That is not true, if so, we would have had no collapse in the 20s. That was a "FREE MARKET" ran by oil, coal, railroad barrons. Free Market leads to no rules CORRECT ? Thus, 13 year olds working 12 hour days, free market setting pay scale via demand, blah, blah, the Peter Schiff routine is what you are offering. YOu cant have "free markets" when the greed and self loathing Ravel continue to plunder workers. That is why FDR had to step in, tax the wealthy into their place, add WWII and all is well for the next 40 years via regulations that forced good pay, benefits, labor laws, and regulations so the the filthy rich could not leverage the worker. The 1980s roll around and a bunch on Zionist get a hold of the finance chambers, tell RONNIE "here, cut taxes temporarily on the rich to stimulate the economy, then have BUSH say "read my lips, no new taxes" and you get what we have today. Workers pay stagnate for 30 years and the filthy rich have quadrupled their value. But go ahead and sell the Propaganda that the right wing facist think tank, koch brothers, Mises University, Cato, Heritage foundation pushes on the gullible, someone out there is DUMB enough to buy it.
It did, and where is there a wonderful ECONOMY ? Do you believe it is wonderful because one man and his cronies tell you that it is ? Do you believe the FED and their 1% INFLATION CPI Lie ? If so, good luck in life, because you are being lied too and you "beilieve, halalula" After 25 years, an electricians job still pays 22$ hour.... Just facts, not propaganda, real inflation is at 5%, that is a fact, not a twisted FED number. People in America are being played, and some will go along because they are gullible and comfy after making their money years ago. They obviously dont care about others, other family members who may be struggling. Then again, that too is following in the Trump footsteps, me, me, me