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Demonstrated are some basic facts.
Any effort to fix an economy by throwing money at it; the economy will only take revenge with even more severe consequences.
Whereas money can be used to address isolated problems, the only solution for an economy in recession is to let companies go through bankruptcy early so as to fix their #1 problem - top management.
Deficits do matter.
Enron style accounting is still alive and well. The greatest reason credit market seizure - nobody could trust anyone else's spread sheets. Industries get the regulation they deserve. Historically, finance industry regulation was and should be massive since no other industry so worships "Greed is good" and so overpays their top management for doing so little.
Tax cuts without spending cuts simply guarantee even higher taxes or other equivalent economic punishment in the future. Warren Buffet was correct. There is no free lunch even though our government said otherwise six years ago. How many forgot $8billion of free money to the airline industry with no strings attached and no repayment required. How many saw increasing debts, saw current profits as high, and therefore assumed everything would be OK ten years later?
Always go to highest levels to find why all those other guilty parties exist.
Ross Perot said that if any company did accounting routinely done in the federal government, then all corporate officers would be jailed immediately.
Any industry that will not innovate until required to by government regulation deserves to be sold to foreigners OR terminated with the stockholders getting exactly what they deserved. There never was any reason for government to protect the auto industry, big steel, or airlines. Only thing that saves a company is the same thing that is the only purpose of that company - product innovation.
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