Completely wrong - the govenment must increase spending in a major way. This agreement that we must pull back on government spending will put this country into the worst depression ever seen. This is exactly the course took in the great depression of the thirties. This is the time to make major investments in our economy.
---'major investments in our economy', what do you think BO did with the trillion dollar stymulus? A coplete failure. It did create some jobs, each job created cost the gov't approx. $325,000. Gov't needs to stop spending, wasting and giving our money away. Remove alot of business taxes and remove a lot of laws that retard business. Why do you think jobs are going overseas? Nutty gov't taxes and regulations. Businesses goals are to make money, if they can't then they go out of business. Thinki about it.
Remember, the 3 things that create most of the wealth are: mfg, commodities and food. Everything else lives off of these. Gov't jobs and programs bleed the country's wealth.
Who has money to invest - you ? Keeping the road maintenance people working does not create more jobs ... it just keeps them working. Tell us what jobs should be created to avoid depression and where the $ should come from to cteate those jobs. Can you do that or can you simply paraphrase Dodd and Barney ?
JCBrowns, I would like to know what you are smoking, but it is obviously doing the trick. The reason why the depression happened was due to a constriction in credit, a systemic failure of the banking industry, and resulting deflation. The reason why the depression lasted forever was due to FDR's reverse logic that the government could spend itself out of the hole, disallow the ownership of gold, etc. That didnt work and things only got worse, drivng the world into war. The global economy needs to reset....it will be very painful, but the duration will be far shorter than if we continue on this aimless course.
Actually, banks can make money right now by making loans, they just dont want to. Lenders are quick to say "there is no loan demand." There is infinite loan demand. The borrowers, though, cannot meet the demands placed upon them by lenders, who want higher spreads, more equity, and tighter underwriting. And as we were dumb enough to let the government give the banks free cash, they have no incentive to deal as long as they have a war chest of capital reserves and can reinvest it in treasuries.
Everything needs to take a step back before we can move forward. This means banks have to swallow their own medicine, make loans they wold rather not make, some of them will fail, and share prices will fall in general. Best managed banks will survive and their prices will rebound. Dont know when that will happen though or if BB&T will be a winner or loser.