Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
The bottom line is that printing money/QE solves nothing - it simply exchanges one asset for another. The only solution to our current plight is systemic fiscal reform, and by this I do not mean the Voodoo economics we are getting in spades, but rather the taxation of unearned income from privileged property rights, coupled with massive fiscal stimulus through spending on productive assets.

ie professionally managed spending on/investment in affordable housing; renewable energy and energy saving projects; a new generation of infrastructure, and above all in the training and education of domestic workforces capable of delivering these.

Bingo! And it matters more on what money is spent than on how much money is spent, though both matter. Money spent "saving the banks" is actually preventing recovery to the exclusion of spending money on projects that would help a recovery. But a true recovery will not come until and unless the banking sector is reformed.

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Thu Oct 14th, 2010 at 12:05:25 PM EST
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