On Fri, 5 Dec 2008 19:57:41 -0500, "Ed Huntress"
wrote:


My feeling is that we can't. But I'm going on all second-hand information
and analysis. Overall, my fear is that the layoffs or firings would be
enough to push us over the brink into a deflationary spiral, which most
experts agree would require years of recovery -- or an extremely expensive,
revolutionary government program that we'd be paying off for decades.

Either way, it isn't pretty. Deflationary spirals tend to last for close to
ten years. And growing the economy with a multi-trillion-dollar national
debt hanging over us would succeed only if the economy is generally healthy
so that the debt service doesn't drive us down in another spiral.

From an economics point of view, I think a bailout is less expensive and a
lot less risky.

Usually, the political leadership will just start a world war to get
things going again. National debts can then have their terms
"rearranged" by the victors i.e., we won't pay you a dime because you
started it.
Dave