On Sun, 27 Dec 2009, michael perelman wrote:
> While the US frittered away much of the stimulus on throwing money at
> banks, the Chinese actually created much more capacity.
Two questions:
1) So far the US hasn't frittered away any money on banks, did it? It lent money and was repaid with interest, or bought assets and then sold them at a profit.
2) Overcapacity is a real problem sometimes, isn't? Would the US or the world have been better off if it had followed the Chinese lead and used stimulus money to build new car factories or steel factories?
Michael