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The complete disconnection from individual reality on the ground is precisely the problem with Keynesian Macro Economics. Individuals would have a much better chance surviving a down turn if the misallocations are corrected quickly instead of drawn out extended path of distraction that all those temporizing bailouts would produce. For example:
1. If GM had folded quickly, other carmakers would be more profitable, and would have hired more people to make cars that actually sell better. How is keeping people making cars that consumers don't want any better than hiring people to dig holes and filling them up?
2. The TBTF banks that were rescued are extremely reluctant to lend.
I address car topics under a different user name. Considering how many times other posters have attacked me personally in those non-car discussions, it's a wise decision to have separate identities for car-related vs. non-car discussions.
posted by 76.118.39...
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