doc_hawkins

How Low the S&P 500 Could Go

I was figuring another 20%
Maybe this makes me a populist but 700B would put a lot of money in the hands of every man woman and child in America. (Its all borrowed though)

Anyway I asked if one had received a stately sum given to them most folks said right off the bat. I'd pay my mortgage.

Hmmm. Banks would get money. Bad loans would be resolved. The people who did not pay back mortage may loose their house and most would deserve it. (People paying off the cost of Chemo we can cut them slack)

Money from the bottom up makes work. Even the bad side of town main pimp who makes bad decisions buys a caddy puts a UAW worker in Detroit to work.

Money who goes to a banker to horde since they make bad decisions makes how many jobs?

Who is better the bad pimp or the bad banker. Both make decisions that destroy lives. Who deserves the money? Why are we borrowing money to give to either.

A former CEO of Caterpillar Inc Lee Morgan stated once
Sales creates jobs.

If the banks see the opportunity they will lend again. If you give the bankers money without a corresponding market they will probably not lend but horde.

Instead of complaining of why the Big banks are not lending we should ask them to explain in one sentence why they are not when the market is flooded with liquidity.

I'm old and I've seen the arguments go back and forth several times and I have seen the results of how the economic engines work under bottom up and trickle down. I do not endorse any one political side but I see plenty of blame.
* One side encourages a group of people to buy things they cannot afford
* Another side comes to power and does not protect said group from predatory lending.
* As Steve Martin said "All I want is a weeks pay for a day's work"