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Notices
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Shaun W. Lockwood (not verified)
11th January 2012 | 12:56pm

Bailouts are wrong for the economy. If you throw more money at bad bets its prolongs the pain and the middle class and poor are ultimately to suffer. When you throw more money at failed institutions you are destroying any productivity going forward, that money could have been put towards new infrastructure but it will take upwards of 10 years before we get back on any real growth. They think lowering interest rates to zero is helping the cause but all its doing is helping the banks receive free money basically. Also its creating housing bubble in all parts of the world. You have a lot of "free" capital racing for houses which causes the prices to speculate. Once interest rates correct to a a normalize level will will see housing prices stay stagnant for many years. The ones late to the party will ultimately pay sitting on stagnant properties for a decade.

A good example is Japan, out of any of the examples above Japan is in closest relation to what is happening in the USA. Japan has been stagnant for 20 years. I believe USA will be stagnant for 10 years at the least. We still have many years of dead weight to get rid of, bad bets and loans to corrupt cowardly selfish leaders and CEO's. This is essentially the problem we have with governments and central banks they think they are smarter than the natural economy, but they are far from the truth. You must let natural dynamics take its course, lets the chips fall where they may. Creating the business cycle only helps the few and destroys the many...