On Jan 30, 2009, at 10:45 PM, Carrol Cox wrote:
> have not the slightest idea just how bad the current crash is/is
> going
> to be. BUT, if it _is_ on the order of magnitude of 1930, and if it
> _is_, as seems to be the case, more or less global, THEN the
> "stimulus"
> planned is spitting in the ocean, and any _actually_ serious plan
> would
> have to be wildly unreasonable by ordinary standards.
From 1929-32, the U.S. gov stood back while GDP fell by 25% and 10,000 banks failed. Over the last year or so, the Fed has expanded its balance sheet by about $2 trillion and a massive stimulus program - bigger than anything the New Deal ever tried - is going to be enacted in a few weeks. Governments around the world are doing similar things. While it may not enough, it's still not spitting in the ocean.
Doug