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Problem with your comment is - it AIN'T gonna happen.
The Fed is better positioned to deal with potential inflation than at any time in it's history. Interest rates are the absolute lowest they've ever been - meaning the Fed can easily allow interest rates to creep up and take the wind out of any inflation without having to raise them so high as to stop the recovery. And let's not even get into the other options the Fed can do to prevent inflation...
The end result is we will be fine. Things will be a bit "iffy" for a while yet and there are plenty of challenges to overcome, but we'll get through them just as we've gotten through the other crises' of the past year.
Ken
They will not raise interest rates. If they do that their whole package of toxic assets plunges in value. The government wants lower rates too as they are the only way they can keep piling on more debt.
Odd how so many folks didn't understand that there was a decent probability that most, if not all, of the initial TARP money would ultimately be paid back.
Funny how folks can't differentiate between loans and gifts.
That's because those folks are generally pretty ignorant and get all their "information" from political pundits who have an ax to grind.
They will not raise interest rates. If they do that their whole package of toxic assets plunges in value. The government wants lower rates too as they are the only way they can keep piling on more debt.
They will most definitely raise rates (several Fed members are ALREADY pushing to do so) - it's just a matter of WHEN and BY HOW MUCH.
Next question of contention will be what to do with the returned TARP money? The Republicans will want to use it to pay down the debt. The Democrats will want to use it, or at least some of it, for job programs. I would opt for job programs. The payback on that would far exceed the initial costs. I am sure, however, there will be much opposition to that for political reasons.
Next question of contention will be what to do with the returned TARP money? The Republicans will want to use it to pay down the debt. The Democrats will want to use it, or at least some of it, for job programs. I would opt for job programs. The payback on that would far exceed the initial costs. I am sure, however, there will be much opposition to that for political reasons.
It was borrowed money..it should go back into the coffers, not to fund the next project. We have to stop making believe we have surplus money to spend.
I agree with HappyTexan on this issue. The recovery is taking hold and no further stimulus is likely needed beyond that which has already been set aside so it should be used to pay down the debt.
I DO think they should hold on to it a bit longer before doing so - just in case the recovery falters. However, I find it unlikely that the recovery will falter so that money PROBABLY won't be needed and can be held in reserve for a bit longer and then paid back once the recovery proceeds a bit further.
That's my wish anyway - what actually happens? Well, we'll have to see.
I agree with HappyTexan on this issue. The recovery is taking hold and no further stimulus is likely needed beyond that which has already been set aside so it should be used to pay down the debt.
I DO think they should hold on to it a bit longer before doing so - just in case the recovery falters. However, I find it unlikely that the recovery will falter so that money PROBABLY won't be needed and can be held in reserve for a bit longer and then paid back once the recovery proceeds a bit further.
That's my wish anyway - what actually happens? Well, we'll have to see.
Ken
That's nice to say and the future, for most us us, does not look so dim. However, there are several areas where any recovery is not being felt. Without some direct action, recovery in those areas will be a very long time coming. Perhaps most people don't care about areas like blacks 16-19 with near 50% unemployment, but to my mind that represents a very real continuing problem that affects all of us, not just those kids.
That's nice to say and the future, for most us us, does not look so dim. However, there are several areas where any recovery is not being felt. Without some direct action, recovery in those areas will be a very long time coming. Perhaps most people don't care about areas like blacks 16-19 with near 50% unemployment, but to my mind that represents a very real continuing problem that affects all of us, not just those kids.
That's school age and the current stimulus has specific spending for those age group people. The government cannot just create jobs out of thin air for p/t working school kids.
The kids will get the jobs when the people in the p/t jobs find full time employment.
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