Am I hearing the news correctly? Are both Republicans and Democrats talking about sending money directly to people poor and unsophisticated enough to spend it? Which probably means me?
This doesn't make any sense. We are having problems in the market because no one knows what anything is worth. What's a dollar worth? What's that mortgage backed asset worth? A mortgage backed asset has two problems; mortgages are valued in dollar terms, and some of the mortgages are in default. How do you assign value to that? We figure the value of a broad range of assets is lower, but we don't know how low.
So sending out a bunch of checks means making the dollar worth less. I get more money, but less purchasing power. Why don't we have politicians that know any better? Keynes has been proven definitively wrong. Why then do I hear people practically channeling him? I am especially sad about the Republicans. They supposedly know better.
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