stephanie
12-10-2008, 02:29 PM
holy moly
Posted Dec 10, 2008 12:00pm EST by Aaron Task
The debate in economic circles over a stimulus package right now is not "Yes or No?" but "How big?"
A $1 trillion stimulus package is necessary, says James Galbraith, economics professor at the University of Texas at Austin and author of The Predator State: How Conservatives Abandoned the Free Market and Why Liberals Should Too.
His advice for President-elect Obama: "You're not going to spend too much."
If the economy responds the government can scale back spending but action "across a broad array" of areas is necessary; not so much to revive growth but "to keep the economy from collapsing," says Galbraith, the son of famed economist and author John Kenneth Galbraith.
Because of the "massive oversupply in housing" and "massive" distress in the credit markets, the current downturn ultimately "could be considerably worse" than the 1980-82 recession (currently the worst post-World War II recession), the economist says.
For that reason, he believes the term "stimulus" is for suckers, because it suggests a quick recovery, which is highly unlikely.
Among Galbraith's recommendations:
read it all and comments..
http://finance.yahoo.com/tech-ticker/article/143086/Advice-for-Obama-1T-Stimulus-Needed-to-'Keep-Economy-from-Collapsing'?tickers=^dji,^gspc,^ixic,QQQQ,SPY,DIA, TLT
Posted Dec 10, 2008 12:00pm EST by Aaron Task
The debate in economic circles over a stimulus package right now is not "Yes or No?" but "How big?"
A $1 trillion stimulus package is necessary, says James Galbraith, economics professor at the University of Texas at Austin and author of The Predator State: How Conservatives Abandoned the Free Market and Why Liberals Should Too.
His advice for President-elect Obama: "You're not going to spend too much."
If the economy responds the government can scale back spending but action "across a broad array" of areas is necessary; not so much to revive growth but "to keep the economy from collapsing," says Galbraith, the son of famed economist and author John Kenneth Galbraith.
Because of the "massive oversupply in housing" and "massive" distress in the credit markets, the current downturn ultimately "could be considerably worse" than the 1980-82 recession (currently the worst post-World War II recession), the economist says.
For that reason, he believes the term "stimulus" is for suckers, because it suggests a quick recovery, which is highly unlikely.
Among Galbraith's recommendations:
read it all and comments..
http://finance.yahoo.com/tech-ticker/article/143086/Advice-for-Obama-1T-Stimulus-Needed-to-'Keep-Economy-from-Collapsing'?tickers=^dji,^gspc,^ixic,QQQQ,SPY,DIA, TLT