[There is unlikely to be a double-dip recession, while the fact that stimulus spending was helpful in containing the crisis is undisputable, Dominique Strauss-Kahn, managing director of the International Monetary Fund (IMF), told CNBC Monday.
The US has taken the correct approach in dealing with the economic slowdown and making sure the recovery is sustainable, Strauss-Kahn added.
"It's not our baseline. We don't believe that the double dip will take place," he said...
Stimulus spending was the key for containing the crisis, according to Strauss-Kahn.
"The fact that the stimulus was absolutely useful is not challenged by anyone now," he said.
"I think what the US is doing today is the right thing. I think as long as they will support (the recovery), finally it will pick up and create jobs," Strauss-Kahn added.] emphasis added
http://www.cnbc.com/id/39145952
2 comments:
The stimulus money prevented the bubble from collapsing all the way. So in a way the author is correct that the stimulus contained the crisis but stabilization of the bubble hurts the economy because worthless mortgages are propped up.
All the derivatives need to be dumped on the open market and sold at free market prices. We need to flush this debt out of the financial system rather than have bad debt carried on the books.
It will hurt for a while but the economy will come back even stronger. There is no modern baseline because it always in flux and is comparatively stated.
This is what happens in the stock market. You get blurbs about the Dow was up 50 points today or down 15. I really do not care whether it went down or up. That information does not tell me anything. I want to know what the average is.
Anyway, the stimulus did work out quite well for the planners. But don't let anyone fool you into thinking that the stimulus saved the economy. That was not the purpose.
The true purpose behind the stimulus was to steal a trillion dollars from the American people, prolong the economic recovery by decades, and increase regulatory restraints on private enterprise which sets the stage to transform our Great Republic into an American Oligarchy.
Dear Anonymous if that be Your Real Name:
"[T]ransform our Great Republic into an American Oligarchy."
WTF?
As far back as 1956 with the publication of C. W. Mills' The Power Elitecould see--if they chose--that interlocking elites controlled large swathes of corporate and governmental concerns.
Unions evolved to give working people a wages, a 40 hour week, OHSA, to provide some penicillin to perditions of predatory capitalists.
Empireofdirt77@gmail.com
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