3 ms·
The government should be helicoptering money into the system, it can print endless amounts of it. It should do it as long as the rest of the economy (consumers
by rswail 7y ago
The government should be helicoptering money into the system, it can print endless amounts of it.
It should do it as long as the rest of the economy (consumers / businesses) are not. However, the money should be going to Main St, not Wall St.
Equity and Debt holders can and should be taking haircuts and losses in recognition of the risk of their investments. Bailing out Wall Street just leads to continuing asset bubbles as investors seek returns independent of risk.
The problem will be when does the government withdraw that support? And how? As business and consumption returns, the government should reduce its addition to the money supply proportionally.
- chrisco255 7y agoYou don't realize how much of our retirement system depends on equity markets.
- masonic 7y agoThe government should be helicoptering money into the system, it can print endless amounts of it. https://en.wikipedia.org/wiki/Weimar_Republic#Hyperinflation https://en.wikipedia.org/wiki/Weimar_Republic#Hyperinflation https://en.wikipedia.org/wiki/Hyperinflation_in_Venezuela https://en.wikipedia.org/wiki/Hyperinflation_in_Venezuela