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View Diary: Morning Feature: Animal Spirits, Part II - Recession, Banking, Unemployment, Inflation (94 comments)

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  •  In present terms ... (6+ / 0-)

    ... their argument is that the stimulus has been insufficient to either revive employment or open the credit markets.  They argue both must happen at once, and indeed the credit markets need to be as open as they would be if we had full employment, because with credit so tight many businesses can't get investment with which to expand and create jobs.  Basically they say it's no use to propose a big job stimulus plan if the businesses that would hire people to do those new jobs ... can't get enough credit to expand and hire the people.

    They don't specify whether that's because the job stimulus and finance bills weren't big enough, or because they're not working fast enough.  But it's important to note the book went to press just after President Obama's inauguration, so obviously they're not commenting on what has happened since.

    Good morning! ::huggggggggs::

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