I like this article bit from HousingDoom.com
As long as the goverment and the people keep thinking this way, this country is doomed.
President Bush- It Ain’t Gonna Work
The government doesn’t want us to bank that money or use it to pay off debts. It believes we will go out and spend the money, and that will make our houses worth a lot again. The idea is this: Say, for instance, I got $600, and I spent it on strippers. Those strippers would then buy clothes at Bebe, and the person who owns Bebe would buy the crappy house I overpaid for and get me out of the financial predicament caused by unscrupulous mortgage lenders and not by my addiction to strip joints.
This might soften the recession if Milton Friedman hadn’t proved 50 years ago that most people base spending decisions on long-term income projections. Only poor people immediately spend checks they get in the mail. And if there’s one thing I’m sure of, it’s that poor people aren’t going to save the economy. Also, if I know anything about the workings of the federal government, the process of writing and sending a $600 check is going to cost about $600.
President Bush, it ain’t gonna work. Priming the pump isn’t very useful when the well is dry. Until “produce and earn” replaces “borrow and spend”, we aren’t going to “recover from this period of uncertainty- no matter how fast Congress cuts that check
