Quote of the Day

Tuesday, October 28, 2008
"...not everyone agrees that the stimulus packages, which are designed to loosen up tight credit, will prove helpful. Peter Schiff, president of broker-dealer Euro Pacific Capital, believes the impact will be decidedly negative.

"The goal of all these plans is to give consumers more money to spend. However, excess consumer spending is part of the problem, not part of the solution" he said. "After a decade-long spending orgy, market forces are finally trying to restrict consumer spending and dampen credit. But the stimulus looks to provide a new source of funds after savings, income, and credit have been exhausted. Our imbalanced economy is in desperate need of retrenchment, but stimulus plans will effectively hold the firemen at bay while throwing gasoline on the flames."

Original article.

3 comments:

Barry Dauphin said...

If I remember correctly, in the Great Depression the Fed made it next to impossible to borrow money. Now they're making it too easy. Like doing the opposite of what happened then as if it's the same problem to begin with.

MeaninglessHotAir said...

Barry,

It's generals fighting the last war.

Barry Dauphin said...

Gee, can't wait to see what Team Obama come up with that will be the opposite of Bush.

(I think Christopher Hitchens is already auditioning for that part)