02-11-2009, 04:23 PM
<!--quoteo(post=17337:date=Feb 11 2009, 12:59 PM:name=woyaokafei)-->QUOTE (woyaokafei @ Feb 11 2009, 12:59 PM) <{POST_SNAPBACK}><!--quotec--><!--quoteo(post=17309:date=Feb 11 2009, 12:17 PM:name=rok)--><div class='quotetop'>QUOTE (rok @ Feb 11 2009, 12:17 PM) <{POST_SNAPBACK}><!--quotec-->Actually, that isn't true about the notion that rebates that go directly into the bank and aren't spent immediately doing nothing for the economy. Money deposited in banks is multiplied many times over by banks lending that money out (the whole point of the banking system), under normal credit circumstances of course. That's banking 101.<!--QuoteEnd--><!--QuoteEEnd-->
Doesn't this also assume the banks are lending readily between each other? Something they haven't been doing much of recently?
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That's why I said "under normal credit circumstances of course" and why I've been saying that TARP and new banking and lending/mortgage regulations are the way to really get the economy going. I'm trying to be fair here, as I don't particularly care for the GOP's ideas at the moment either. I do like the notion of a mix of ideas though, and can get on board with widespread infrastructure spending, some targeted tax cuts, and even a serious emphasis on fixing health care (which is a real tax on the economy and isn't even on the table with this plan). Too bad that last point is taking a back seat to other pet projects disguised as necessary stimulus spending.
Doesn't this also assume the banks are lending readily between each other? Something they haven't been doing much of recently?
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That's why I said "under normal credit circumstances of course" and why I've been saying that TARP and new banking and lending/mortgage regulations are the way to really get the economy going. I'm trying to be fair here, as I don't particularly care for the GOP's ideas at the moment either. I do like the notion of a mix of ideas though, and can get on board with widespread infrastructure spending, some targeted tax cuts, and even a serious emphasis on fixing health care (which is a real tax on the economy and isn't even on the table with this plan). Too bad that last point is taking a back seat to other pet projects disguised as necessary stimulus spending.