Wow..;just wow..that WSJ oped outdoes their usual propaganda supporting fascism..and that's exactly what the conservative right really wants.. Complete facism between fed govt and arms and defense contractors..along with old testament laws for the ever expanding feudal serf class..
Posted by headxray at January 10, 2009 10:37 PMI'm not an economist but have read a lot of economic stuff on the net and in print the last few years. Stimulus might help, but you're relying on people (many of them foreigners) buying US bonds at low interest forever. If they stop, and we have to raise interest rates to entice people to buy our bonds, we are screwed.
Posted by howard hughes blues at January 11, 2009 03:36 AMWe have a recent expample to understand why we need a strong growth package. Japan is still recovering from a deflationary cycle. It took a decade of minimimal growth. The overwhelming majority of Economists say this has to be big. Krugman's latest column gives the numbers why the current plan isn't big enough.
http://krugman.blogs.nytimes.com/2009/01/10/risks-of-deflation-wonkish-but-important/
Posted by allansfca at January 11, 2009 08:59 AM