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Outside of the stimulus package and extending unemployment benefits, what is the government doing to get us out of this recession? Like what other solutions have they come up with?
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the obama administration has just been throwing taxpayer money atthe problem to keep the bubble artificially afloat. when arms reset andforeclosures top out, the second crash will likely be as bad, if notworse, than the first.
This and when the US's interest payments as proportion of government revenue(essentially the government's interest coverage ratio) is greater than 10%, it's at roughly 4.5-5% now. Also when the majority of government notes, bonds and t-bills expire within 5 years, I predict that the yields will shoot up dramatically because investors will want to see higher returns associated with greater risk that the US government may default or partially default through inflating away its debt problems ala Greece today. In return the interest rates for all types of consumer and business loans will increase and cause massive capital structure de-leveraging in industry cutting into profit margins, again. This and the US will eventually need to raise taxes or decrease government spending. The former is more likely.Originally Posted by mr delorean
the obama administration has just been throwing taxpayer money at the problem to keep the bubble artificially afloat. when arms reset and foreclosures top out, the second crash will likely be as bad, if not worse, than the first.
Some smart posters here. Wish the rest of NT was the same way.Originally Posted by JC08
This and when the US's interest payments as proportion of government revenue(essentially the government's interest coverage ratio) is greater than 10%, it's at roughly 4.5-5% now. Also when the majority of government notes, bonds and t-bills expire within 5 years, I predict that the yields will shoot up dramatically because investors will want to see higher returns associated with greater risk that the US government may default or partially default through inflating away its debt problems ala Greece today. In return the interest rates for all types of consumer and business loans will increase and cause massive capital structure de-leveraging in industry cutting into profit margins, again. This and the US will eventually need to raise taxes or decrease government spending. The former is more likely.Originally Posted by mr delorean
the obama administration has just been throwing taxpayer money at the problem to keep the bubble artificially afloat. when arms reset and foreclosures top out, the second crash will likely be as bad, if not worse, than the first.
The aging demographic of the US coupled with problems funding public/private pensions, social security and healthcare will be a big drag on economic growth in the US for years to come. The government cannot keep propping up economy when there is no real economic growth via private consumption, investments, exports and increased productivity.
It's sad that more people don't think like this.Originally Posted by OLD SCHOOL
It's not the government's job to get us out of a recession.