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Category Archives: Crisis

Taxes or Spending: is there a difference?

Yes, there can be a difference to the overall economy.  It depends on what is done with the tax cuts.  Generally, both can stay and stimulate the economy.  But, if the taxes cuts are used to pay off bank debt, this reduces the amount of money in circulation.  This is very harmful in a declining […]

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The Solution to the Crisis

Now that the new stimulus package has gone thru Congress, it will help the economy but will it be enough to pull us out of this downward spiral.  Doubtful!  What will stop this spiral and then expand the economy.  The answer relatively simple.  It is three to four programs.  They are:  1. reverse the collapse and revive the residential housing […]

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The three legs

The President has described his recovery program as three legs of a stool – jobs, credit, and housing. 1) The stimulus was intended to address the the first.  It gets us about one third the way to bridging the gap in demand through stimulative government spending.  Can another stimulus be pushed through this year?  More […]

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American Auto Crisis Solution

Like the mortgage crisis, the federal gov’t is trying to solve the auto crisis from the top down instead of the bottom up or at least both.  How can the gov’t solve it from the bottom up?  Simple, create money from the Federal Reserve (the window) in the form of 10 year notes at 1-2% for auto […]

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Because of the recent financial crisis.  I have decided to create this section in the blog.  I will try to explain in only economic terms  some of the misstatements and myths in some of the information.  If you want the long term solution, review the section on the website “The Monetary Solution”. 1. Income tax debate […]

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Sub-Prime What should have been done?

Congress, Banks, and the financial wizards of Wall Street are trying to put the financial system back together again.  I am not going to discuss these solutions here, nor the many causes, stupidity being one of them.   The goal of the sub-prime mortgage was to place more lower income families into their own home.  […]

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