[Dialogue] Stimulus package examined

[darrell walker]

    These companies also used up their credit to expand explosively to become bloated balloons ready to pop.  Everywhere you look there are almost identical stores nearly adjacent (Home Depot/Lowes, Citcuit City/Best Buy, Starbucks/The Grind and local brands, etc.).  Strip malls everywhere, now half vacant.  It wasn't just the homebuilders who were exuberant in their expansion.  There was a mindset in the mid-2000's, brought on, as you say, by the various Bush policies of dereguation, low taxes, low interest, etc., but companies, large and small, got carried away with expansion using borrowed money and when there was a glitch in the economy it all imploded.  Companies had no cash to carry them through.  They were borrowing money not only for expansion but to make weekly payroll, for crying out loud.  The entire economy--neighborhood families and big business alike--operated on borrowed money via credit cards and bank paper.  That wasn't the economic model I learned when I was young.  Going pay-as-you-go may nat have permitted the boom times that we all enjoyed but neither would there have been the busts. 
    Half the American public voted for W in part because they liked the frosting on the credit cake that supported it.  They lived on frosting and forgot the veggies.  Now we are back to eating contaminated peanut butter.
    Darrell Walker
  ----- Original Message ----- 
  From: David Walters 
  To: Colleague Dialogue 
  Sent: Tuesday, February 17, 2009 1:25 PM
  Subject: Re: [Dialogue] Stimulus package examined


  I do not understand your comment re: Circuit City, Home Depot, home builders, many others. They got in trouble when the banks stopped extending credit to them. These banks were the ones who took cash from the feds and spent on bonuses, dividends payment and buying up other banks rather than opening up credit. Circuit City etc. was further hit by the unemployed who could no longer buy their goods. All of which traces back to failed economic policies. namely deregulation  and massive tax cuts that destroyed the economy the republicans inherited from the 90s. All of which that the lower taxes, smaller government less regulation, trickle down philosophy of Ronald Reagan does not work. 

  David Walters





  Darrell wrote:
     In fact, to continue the metaphor, Ocala's plan is to build a fence or gate across the pool so the water will in fact get deeper on the shallow end.  The shallow end represents run down schools, dilapidated bridges, pot-holed roads, bankrupt states and cities; the deep end represents businesses that in their exuberance over-expanded (Circuit City, Home Depot, home builders, many others) and now want the government to cover up their mistakes with cash.



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