World-News

Christian Science Monitor
by staff

02/10/09

To jolt the economy and end a recession born out of too much homeowner debt, Congress and the US Treasury this week plan to take on at least $1.1 trillion in new national debt. This ‘good’ debt will be thrown at ‘bad’ debt, in Keynesian logic. It’s not really a Ponzi scheme. But that’s true only if it works. At the very least, the expected stimulus of some $827 billion and a new bank rescue of $350 billion will serve as a safety net to keep jobless Americans and the economy from sinking further. Some $50-$100 billion, for instance, is expected to go for mortgage relief. But it is a leap of faith, even among Keynesian economists, that throwing money into a debt-ridden economy will thaw frozen credit markets and revive the kind of entrepreneurial risk-taking that creates jobs. Meanwhile, it takes little faith to see the debt costs of that leap...

http://www.csmonitor.com/2009/0210/p08s01-comv.html


Informant: Thomas L. Knapp



http://freepage.twoday.net/search?q=America+debt
http://freepage.twoday.net/search?q=national+debt
http://freepage.twoday.net/search?q=recession
http://freepage.twoday.net/search?q=homeowner
http://freepage.twoday.net/search?q=Treasury
http://freepage.twoday.net/search?q=Keynesian
http://freepage.twoday.net/search?q=Ponzi
http://freepage.twoday.net/search?q=stimulus
http://freepage.twoday.net/search?q=mortgage
http://freepage.twoday.net/search?q=credit+market