Comments on: Stimulus is on the way http://rc3.org/2008/12/29/stimulus-is-on-the-way/ Strong opinions weakly held Fri, 12 Mar 2010 01:43:45 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Stan Taylor http://rc3.org/2008/12/29/stimulus-is-on-the-way/comment-page-1/#comment-3994 Stan Taylor Mon, 29 Dec 2008 19:46:39 +0000 http://rc3.org/?p=8813#comment-3994 <blockquote>The difference between borrowing and having is that now the economy is going to suffer as people try to pay down the debt they’ve accumulated as rapidly as possible.</blockquote> <p>Actually, that's only part of the picture. Whenever I hear people talk about the need to get banks to start lending again, I think: it'll never go back to the way it was, since that was unsustainable.</p> <p>So, the additional pain will be the adjustment to an economy without all that easy credit. So, even if we ease the current crisis, the new 'good' economy will not be nearly as large as it was before. In terms of jobs, etc., that's gonna hurt.</p> The difference between borrowing and having is that now the economy is going to suffer as people try to pay down the debt they’ve accumulated as rapidly as possible.

Actually, that’s only part of the picture. Whenever I hear people talk about the need to get banks to start lending again, I think: it’ll never go back to the way it was, since that was unsustainable.

So, the additional pain will be the adjustment to an economy without all that easy credit. So, even if we ease the current crisis, the new ‘good’ economy will not be nearly as large as it was before. In terms of jobs, etc., that’s gonna hurt.

]]> By: Rafe http://rc3.org/2008/12/29/stimulus-is-on-the-way/comment-page-1/#comment-3990 Rafe Mon, 29 Dec 2008 18:01:51 +0000 http://rc3.org/?p=8813#comment-3990 <p>Given the performance of most retirement accounts, it looks like we may still be able to pull their standard of living down to ours, though.</p> Given the performance of most retirement accounts, it looks like we may still be able to pull their standard of living down to ours, though.

]]> By: Ginger http://rc3.org/2008/12/29/stimulus-is-on-the-way/comment-page-1/#comment-3989 Ginger Mon, 29 Dec 2008 17:37:11 +0000 http://rc3.org/?p=8813#comment-3989 <p>I remember thinking in college that my generation (early Xers) would be the first generation not to improve their standard of living over their parents'. I look at my peers and my family, mostly the in-laws, and finally the illusion that allowed everyone to think otherwise has fallen apart.</p> I remember thinking in college that my generation (early Xers) would be the first generation not to improve their standard of living over their parents’. I look at my peers and my family, mostly the in-laws, and finally the illusion that allowed everyone to think otherwise has fallen apart.

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