What would have happened to the world economy if there was no massive stimulus?
Posted by admin in Finance Sunday, 9 January 2011 06:30 12 Comments
The great depression happened because we allowed our financial institutions to fail, which caused the stock market to crash. What would have happened to the economy if we had let the financial institutions to fail again?
Republican Governors wouldn’t have any way to fund programs without taking stimulus money, silly!
We likely would have entered a second great depression, it could have been just as bad or even worse.
I think you are confusing the “bailouts” with the “stimulus packages”.
The recession would already be over and many of the crooks would be out of business and replaced by business models that actually work.
nothing
Can’t say personally as I am not a huge economist, but I think we are just beating around the bus to fix something that’s unsustainable. I think Wall Street should def be regulated to an extent though, those big whigs care more about money and the Fed. Reserve than living.
Economists say it would have been very bad.
What would have happened to the government if the banks folded and the gov. had to pay on all those FDIC claims? They’d have run out of $ long before everyone was compensated.
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You will find out, if the banks don’t get their shyt together on these fraudulent foreclosures.
http://ourfuture.org/blog-entry/2010104007/obama-must-reject-foreclosure-fraud-bailout
It would have been better by now.
You are dead wrong about the Depression. It was too much spending that prolong it years past what it should have been.
You are mixing up two different things. The TARP legislation passed by Congress and signed into law in the last months of the Bush administration are what “saved” the Financial institutions. The Stimulus was passed by Congress and signed into law in the first year of the Obama administration. It was to stimulate the economy and create jobs. It accomplished neither. See charts below.
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Two totally different questions, both with the same answer – if our government had done NOTHING AT ALL, the economy would have made a full recovery by natural market forces by now.
AND we would be rid of economic dinosaurs like GM and Goldman Sachs, so we would not keep having this same problem over and over again.
The more government intervenes in the events of the marketplace, the more they disturb it and only make the problems worse.
Nothing. Most of the stimulus money hasn’t been spent, and yet we are still afloat. The stimulus money actually turn out to be a Democrat slush fund to pay back those who got them into power. Its a tax payer funded kick-back.