Thursday, March 12, 2009

Is printing new money the right solution?

"All of a sudden, nationalization seems to have come home. These days, a federal takeover of the banking system is practically the only thing Republicans want to talk about."

"The only people talking about nationalization are Republicans -- this is crazy to me, that they have traded their entire ideology within six weeks."

That is the magic of a crisis.
The fact that what yesterday looked blooming and high revenues producing today looks gloomy and bankruptcy.
And what happens when a company makes more losses than revenues?
Obviously the State comes in.
To save people jobs and to assure that everything is going on as ever, because "People are more concerned about losing their jobs, losing their house, the change of living standards that they're facing,".
People care for today and already borrowed the past to have a better future.
But what happens when there is no money to borrow anymore?
Is printing new money the right solution?

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