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I think it's good. Ultimately it's a transfer of debt from the household sector to the government sector. This will allow the US to directly better negotiate the debt situation with our creditors the Chinese, Saudis, etc.
The issue at the bottom of all the crisis is the level of debt in the household sector. A stimulus targeted there would help reduce the amount of leverage households hold AND increase the amount of deposits in banks.
So, a stimulus in the household sector can both shore up bank finances (deposits taking the place of defaulted mortgage assets) AND reduce debt loads on households... while transferring the debt to the government.
People will argue that it'll encourage irresponsibility and an increase in household debt... But, the only reason households were able to get themselves in such debt was because banks/institutions gave them credit.
Banks/Institutions are no longer in a viable position to extend the credit. When the credit limit has been cut... people can't spend and get themselves in more debt anyways. When you run your credit card and it is denied... debt spending ends pretty quickly.
ACTUALLY, I am opposed to this, but I figure they are just tossing money around now.....so I might as well get some of mine back.
I agree. I'm against anymore stimulus checks and bailouts. The last stimulus check didn't do what it was supposed to. Heck, I didn't rush out and spend mine. It went to pay for knee surgery that I needed. The few dollars I had left over went to pay a credit card down. The bailout didn't restore confidence like it was supposed to either.
IF they decide on this and do pass another check my way it's going to a credit card or into a savings account. Either way it won't be entering our economy as the government hopes.
They say that there are millions of dollars that were never sent out as planned for the first one. Alot of people didn't file and therefore couldn't get the stimulus. I wonder if that's why they are able/going to do it again.
But, the only reason households were able to get themselves in such debt was because banks/institutions gave them credit.
I wish people would stop justifying the mess they got themselves into by saying "Oh, the bank gave me the money, it's not my fault!"
Wrong. It IS their fault. Sure, the bank shouldn't have agreed to give them the dough, but the foolish consumer didn't have a gun to his or her head when signing the contract.
No, we do not need another stimulus check. Do you want to mortgage away the financial future of our children and grandchildren just because a bunch of people couldn't manage their money properly? Not me.
No checks. I don't want to pay for it and I don't want my kids to pay for it.
I was willing to make payments, but i was a month late on my car payment, and i got yanked quick. Their fees, service charges, and an interest jump that pushed me over the edge.
I've been through it and i think the check is wrong.
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