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Originally Posted by Platapus
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Originally Posted by Skybird
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I wonder where this money is coming from. If it all just gets newly printed, you can expect a huge jump in inflation. If it is being taken from other parts of the budget, it is missing somewhere else. And if the money is raised by lending, it means that america accept even more debts and a deficitary budget. This money needs to be payed back then - I wonder how they do it without making cuts to other parts of the budget, the military budget - or raising taxes.
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Republicans don' worry about such trifling details. Spend now, let your kids pay off the debt. |
Sometimes I get the impression that some people are wondering why they should ever pay back at all.
The decision today gives short relief for the imminent future. But it holds great risks and unpredictables for the medium and longterm future. It is not the great miracle solution that makes the issue a thing of the past.
I would predict that the effect lasts a while - and then has been eaten up, and new major falls threaten the market - and more state aide will be demanded. However, I estimate the Fed already has consummed the better part of its reserves and potential influence. After this crisis has digested both Wall street and the Fed, both will no longer remain to be the onces they had been before.