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Decade Of Stimulus Yields Nothing But Mountain Of Debt; What To Do About It?

Sunday, August 7, 2011 - 8:56 AM
http://globaleconomicanalysis.blogspot.com/2011/08/decade-of-stimulus-yields-nothing-but.html
Is there any kind of stimulus the US did not try in the last 10 years?

  • We had 1% interest rates from Greenspan fueling housing.
  • We had wars from Bush and Obama fueling defense industry employment.
  • We had two rounds of Quantitative easing from the Fed.
  • We had cash-for-clunkers.
  • We had two housing tax credit packages.
  • We had an $800 billion stimulus package from Congress for "shovel-ready" projects.
  • We had stimulus kickbacks to states.
  • We had HAMP (Home Affordable Mortgage Program).
  • We had bank bailouts out the wazoo to stimulate lending.
  • We had Small Business lending programs.
  • We had central bank liquidity swaps.
  • We had Maiden Lane, Maiden Lane II, and Maiden Lane III
  • We had Single Tranche Repurchase agreements
  • We had the Citi Asset Guarantee
  • We had TALF, TARP, TAF, CPFF, TSLF, MMIFF, TLGP, AMLF, PPIP, and PDCF
  • We had so many programs the Fed must have run out of letters because they were not given an acronym.
That is a partial list. Other than bailing out bondholders what exactly do we have to show for any of it? The one-word answer is "debt".
...
Caroline Baum wrote an excellent article on this theme. It was so good I asked if I could reproduce it in entirety.

 

The article and conclusion available on MISH's link above.
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MikeMike327 posts since
Feb 22, 2010
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