Home > economy, finance, united states > U.S. rescue efforts may risk double-dip recession

U.S. rescue efforts may risk double-dip recession

U.S. companies, consumers and communities may grow so addicted to government financial help that cutting them off could trigger another recession soon after the current one ends.

Between the U.S. Federal Reserve’s trillions of dollars in lending programs, the $787 billion stimulus package and $700 billion — and counting — in bank bailout funds, no one can accuse officials of soft-pedaling their crisis response.

But there is increasing concern that when the flow of public money subsides — beginning next year when much of that stimulus package is spent — the economy still won’t be strong enough to stand on its own.

[ Continue reading original article at Reuters ]

  1. jim
    March 4, 2009 at 12:38 am

    The billion dollar bailouts and the lack of influence it has had on the economy has had me thinking. There are approximately 600 million legal citizens in the United States.I have a suggestion. Let the government slice off a measly 600 million from the auto industry and financial industry bailouts and give each man woman and child in the United States a million dollars to do with as they please. Heck they can even tax us on it. Food, shelter, health care, college, and cars would be bought . Houses would be upgraded or renovated, a few people may buy cars for their newly licensed teenagers. Some may even replace the car that they can’t afford to fix.

    Sure some of it will be used for ill gotten gains, but is that any different then the shams that went on with the wall street bonuses at Meryll Lynch just before the Bank of America aquistion? For grins lets say half the people in the US blow the money. Does 300 million dollars sound like that big a deal anymore? The other half of the people invest in historically cheap stocks, put money in the bank and upgrade their life.

    But in the grand scheme of things when AIG came back for another 30 BILLION dollars don’t you think a meager 600 million would do a lot more for main street then these giant corporate bailouts that are not working. Think about it for just 400 million dollars under one !! stinking billion dollars every man woman and child in the United States could have a million dollars to invest or spend as they please. Think about that. We and our children are going to pay for it anyway. Why can’t we spend it the way we want to.

    What do you think would help the housing and auto markets? My guess is 600 million people with a million dollars each will kick start things fairly quickly. 600 million dollars is barely a little over a half a billion dollars. Just for grins Lets just keep throwing these insane numbers around. I’m numb… are you?

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