Originally Posted by screener
I suppose it depends on how big the "sinkholes" are and how it affects the non sinkholes that had nothing to do with the "sinkholes" that are affected.
eg. the auto parts industry.
The US economy, if it goes down will drag every other economy with it, and this is why keeping it afloat by allowing the printing of money to keep the world on a somewhat even keel until the recovery, which will happen.
Just my opinion.
The problem is that it's exactly this propping up or keeping afloat that caused
the problem in the first place! This recession (as will previous ones) is not a failure
of capitalism, as many suppose, but a feature
! It's the market adjusting to the malinvestment and misallocation of capital that was created as a result of the Fed-created bubbles (most recently the dot com and housing). So applying more of the same cure isn't going to fix it. The best thing they could have done (starting back in September) was nothing
. For example, let the banks that were going down to fail. Let the car companies go bankrupt (they obviously are doing so anyway, but it's now 5 months and $35 billion later!) They have made things worse
by these two major bailout/stimulus bills (not to mention the various other smaller things they've done)!