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And one of the reasons that this isn't having the desired effect is that companies are holding on to far more cash than normal and aren't investing it on future
by tankenmate 12y ago
And one of the reasons that this isn't having the desired effect is that companies are holding on to far more cash than normal and aren't investing it on future growth.
Australia had a much better idea at the beginning of the GFC, they paid $1000 directly to anyone who had paid at least $1 in taxes the previous year; poor people aren't afraid to spend money...
- youngtaff 12y agoThat's one of the key issues with the current QE process - essentially all the money has gone to the banks / funds etc. in he hope they'd lend it to other producers but the reality is they've used it to make their own profits at others expense. A better approach might have been to give it to the people to spend, save, pay off debt as they wished. I'd have given it to people on welfare as well as tax payers. I'm always suspicious of people like Krugman who claim to know the answer but didn't see the crisis coming.
- tankenmate 12y agoYou might want to check this curated list of people who "predicted" the GFC. Some of the names on the list(s) were a surprise to me. The one person I respect greatly on this list is Steven Keen (he featured highly in both lists). http://www.investorhome.com/predicted.htm http://www.investorhome.com/predicted.htm EDIT: fixed spelling mistake