Quite common you know
back2basicz
1/19/2012 11:37:08 AM
Marvin,
The notion of paying off voters directly(in cash) is very common in Asia and especially in India.
Elections are the No.1 stimulus program in India.
It just left me shaking my head,this getting something for nothing mentality is getting totally,totally out of hand.
Ashish.
Re: New Business Model
back2basicz
1/19/2012 11:34:36 AM
Heinrich,
Quite right you are here!!!
Ashish.
"As a result, to get funding from the government you have to fail and fail big."
Failing as a business model, yes, there is some truth to that.
Injecting money directly into the economy is like the policy of industrial pacific rim nations. In Japan and Korea, large enterprises are part of the national prestige and considered strategic assets, and receive a great deal of public investment.
In America this kind of policy is criticized as 'picking winners' in industry. As a result, to get funding from the government you have to fail and fail big.
Heinrich,
You're missing the point the point is from a policy perspective, we are deleveraging. The current model means the banks deleverage in a really slow way while certain players draw huge bonuses on enterprises that have declining equity.
Why not speed up the process by eliminating the entities that are saddling the economy with negative equity (any bank that is insolvent), and inject that money directly into the economy instead of an economic black hole.
The same goes for Greece. Get it over with. Let them default and implode. Start over.
I'm interested in cutting out government middlemen. What about lobbyists. think of all the money sucked out of the economy by lobbyists.
Yes, people love to gamble. Why not limit the stimulus payout to a few lucky winners?
Ok we won't call it taxation Heinrich -- we will call it a lottery.
You mean collect tax money from people and then let them draw on it as stimulus? I'm afraid this goes against the accepted practice of taxing the lower classes to stimulate the rich.
Stimulus voting -- I love it. It could be a whole new business model for government. Cut out the middleman. Actually for a long time I have thought instead of bailout out banks with 0% loans the Fed should start a program for consumers/voters. You can go to Fed.gov and download the free money at 0% but only under the condition that you use it to 1) pay off existing, higher rate debt or 2) Put the money on deposit at the Fed and collect .25% interest, like the banks do.
That's another way to cut out the middleman -- if the Fed really wants to use money-printing to stimulate the economy it needs to find am more direct way to consumers as the banks are simply middlemen who are jamming up the process.
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