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  • Is the Prospect of Economic Stimulus De-Stimulating? [View article]
    Mr. Lounsbury: the answer to the question in your first comment is "yes" - take it from BB himself. Twice in today's speech at LSE he referred to credit market intervention being as much about generating confidence as providing liquidity. In fact, we could argue that we have interlinked crises afflicting the financial system and the wider economy: a credit crisis and a crisis of confidence.

    Turning to the discussion above regarding tax credits for new-hires, the increasingly desperate UK government's approach is to hand out GBP2500 to firms that hire people who have been unemployed for at least 6 months. The SA audience is bright enough to work out the lunacies in this without any further explanation - although apparently our Great Leader isn't. My point is simply that the more that governments intervene in places they shouldn't be, the tighter the knot in their undergarments becomes.
    Jan 13 14:07 pm |Rating: +1 0
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