Why haven’t USA’s financial stimulus efforts stimulated anything?

Discussion in 'Economy' started by Supposn, Aug 7, 2009.

  1. Supposn
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    Supposn Senior Member

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    USA has ignored one of the basic policies of good parenting and good business, “payment upon delivery”.

    The federal government granted financial institutions unprecedented sums of insufficiently collateralized loans with little or no legally binding commitment from the borrowers. Because Chrysler repaid the governments loans and interest, does not insure they and other financial institutions which are “too great to be permitted to fail”, will be able and willing to do so in the future. Our government’s hope, (and it was only a hope) was for the borrowed money to be judiciously loaned out to other borrowers.

    The scheme was that these vast sums borrowed by the federal government, then lent at extremely low rates of interest to these great wholesalers of loans would enable them to serve their clients, repay the principle and interest due to the government and earn reasonable profits for themselves. Monetary credit would continue to promulgate throughout our economy for the benefit of all.

    Thus far these institutions have determined that in these tight credit times, lesser blessed commercial entities can be purchased at bargain prices. What money they’re not hoarding or spending to increase their dominance of the financial industries, they are distributing as executive bonuses. Not all of the bonus money is derived from the government. The consolidated corporations require fewer employees. That's good for the sharks but not as beneficial to all others.

    What others may describe as "trickle down economics" is more aptly described as "they’re urinating upon us". Why should we have expected different? Financial executives and their corporations are reputed to have well perfected the abilities to follow others into a revolving door and emerging ahead of them.

    These are the people we paid before they delivered the service.

    Respectfully, Supposn
     

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