Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
jsut a note to point out that i did place the word stimulus in scare quotes, as a catch-all word, in my original comment, though your analysis still stands.

By some estimates, the "lost" monies in CDO's, CDS's or whatever alphabet soup acronyms are being used range well up into the 10's of trillions of USD, so I am not really surprised that two or three trillion of giveaways to the financial sector has not improved the situation of the high finance system much, if at all. For Joe The Plumber, the money given to him directly would certainly decrease his reliance on the financial sector at least temporarily and give the REAL economy a much-needed jumpstart.

I do see the merit in your suggested modification of a direct payment to individuals to be used to retire a debt or establish a new investment. I do believe that would be a better use of financial bailout funds as opposed to what happened with the first TARP monies, and possibily the rest of them, too.  So, split the 11,600 USD for each individual in half.  One half for such a program, the other half left to individual discretion for use in the automobile/healthcare/foreclosure/etc crises. Do you think that would work?

I'm no economist, just an observer, so I realize that my simplification may not be the most nearly correct way of approaching the gargantuan problem we see. My plea for explanation is real, and thus I appreciate and thank you for your reply.

Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has. -Margaret Mead

by blueneck on Sat Feb 28th, 2009 at 05:18:26 PM EST
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