Home > Miscellaneous Musings > Small brain questions?

Small brain questions?

1.  If a trillion dollar stimulus didn’t work because it was “too small, too gutless, too wimpish” (according to guys like Paul Krugman) what would it take to stimulate the economy?  $10 trillion?  A quadrillion?  A google?

2.  If stimulus works to cure an economy of any downturn, why don’t we have stimulus all the time, whenever any region or state has a little downturn?  Why isn’t everyone guaranteed to be bailed out if their business goes bad?  Wouldn’t that encourage business activity?  Why should anyone be allowed to fail if bankruptcy and failure is bad for consumption?

3.  If AAA ratings mean something, why were they given to Enron, to CDOs, to RBMS, to govts that subsequently blew up?

4.  When should the stimulus experiment stop?  Should it keep going forever if it doesn’t work?  What would cause you to say “This experiment in govt-stimulation has failed to stimulate.  Let’s stop it before it does any more damage.”?

Categories: Miscellaneous Musings
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: