They can buy all the bonds they want but they can't make the banks lend out the cash. Until that changes, QE2 is bupkes. Doug
They could if we nationalized the banks! (A guy can dream, can't he?) Miles
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I tried two years ago to figure how all the above could be worked together in a master package. Nationalize some of the banks, close others, and then re-open under `new management'. Another component is creating a master plan for which industries get reduced rate money and which don't. This works to manage the general direction of the economy.
I imagine the above is probably something like the Chinese system.
The other part of the plan was big increases in public sector hiring and restoring a lot of government jobs that have be cut for thirty years. A lot of these civil service jobs were pay tickets out of the working poor, like the old post office system, the social security system, veterans affairs, and of course teachers, maintance workers, etc.
I don't imagine there would be much anti-government sentiment out there, if a good paying easy entry government job was waiting to get filled...
When I say government, I mean all levels. It seem to me if you add all those levels up it gets to be a pretty damned big employment system.
I know none of that is going to happen, but its a lot more fun to figure out how to fix things, rather than destroy them.
CG