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Reply #42: I don't think that this is going to fix the economy, because [View All]

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Home » Discuss » Archives » General Discussion: Presidential (Through Nov 2009) Donate to DU
amandabeech Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Mar-23-09 09:07 PM
Response to Reply #41
42. I don't think that this is going to fix the economy, because
I don't think that liquidity is the entire problem.

It seems like Geithner thinks that we can go back to the status quo ante. However, the American consumer, who is responsible for 70% of the economic activity here, is tapped out and fears, with good reason, losing his or her job. Some jobs might be saved if, in fact, the banks decide that they can make money by issuing loans, but the banks are in business only to make money for their shareholders. Lending and the bottom line may not be the same anymore.

Then there is the moral hazard about bailing out a bunch of crooks who made this mess in the first place. You may trust them not to get us into trouble again. I don't.
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