Monday, January 26, 2009

What if it Doesn't Work?

Circulation in macroeconomicsImage via WikipediaThis is something I worry about... The fact is we've never had a situation quite like this before. No one really know the correct course, not for sure, it's only economic theory.

http://www.politico.com/news/stories/0109/17951.html

"If his $825 billion economic stimulus plan is not successful, economists and investors warn that a stock market slide could be more like a 4,000-point stock market crash.

...

"In addition, he said, action buys time.

"'But at least he.s done something. You look at the Katrina situation, what did the president get criticized for? For not being effective? No, he got criticized for doing nothing,' Regalia added.

"In addition, he said, action buys time."

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