Sunday, March 22, 2009

DeLong Tries

Q: How does having the U.S. government invest $1 trillion in the world's largest hedge fund operations reduce unemployment?

A: At the moment, those businesses that ought to be expanding and hiring cannot profitably expand and hire because the terms on which they can finance expansion are so lousy. The terms on which they can finance expansion...

Um, what "businesses that ought to be expanding and hiring" would that
be exactly? Automakers could maybe make more cars to not be sold. For credit to "flow" there needs to be someplace for it to "flow to."

You don't repair a clogged pipe by filling the reservoir.

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