Quote Originally Posted by maladroit
i think a stimulus is needed BUT:
- there might not be any money left for stimulus after the socialist bank rescue
Of course there is:jointsmile:

the first $170 billion stimulus earlier this year failed
That is because: 1. It was much too small. 2. It was really a tax rebate. In that case, there was a rather low multiplier effect, due to the nature of the rebate (skips step 1), and high demand to pay off debt.

governments should operate on a surplus in good times (and pay debt down) and, if necessary, operate on a deficit in bad times...that hasn't been happening for for the past 40 years or so and the accumulated debt plus the abnormally high deficits are limiting choices...sooner or later, americans are going to pay the full price...maybe it will hurt less if they stretch out the payments over 40 years at an attractive introductory interest rate (subject to increase to market rates)
I do agree. Yet the budget went off balance after 911, along with the recession. Those are not exactly "good times" so to say.

A super stimulus (greater than or equal to $1 trillion) is needed to prolong the eventual demise of this Keynesian wet dream.