02-08-2009, 08:47 AM
RgrF wrote:
Their aim may be off but that is the only weapon they have. As private capital contracts, jobs evaporate which in turn causes further contraction of private capital which costs jobs which ... ad infinitum until something, maybe everything, collapses.
This infusion MAY and that's a big MAY offset enough of the private contraction to at least stabilize things, it may not, but left to it'd own devises, the private economy will tank and tank fast.
That's a big bet on the table.
A year's federal tax revenue out there and another year's tax revenue on the table on the slight chance that it will slow down the slide.
Meanwhile, there's reason to believe that we'd be coming out of the recession in another year or so with or without the government stimulus.
Example:
http://fosters.com/apps/pbcs.dll/article.../712049817