Tornado Alley (PROG)

[fuagf]

nice .. re the 'public spending' vs 'private spending' debate .. the position of some that public spending cuts out private spending side vs the hey, doesn't matter what spending .. it's spending which was/is needed, period .. on rereading the one you replied to

It's the Austerity, Stupid: How We Were Sold an Economy-Killing Lie .. this bit in the first one ..

The problem, from an economist's perspective, was a simple one: The housing bubble had burst, and banks were stuck with enormous losses on their housing-related securities .. http://www.gpo.gov/fdsys/pkg/GPO-FCIC/pdf/GPO-FCIC.pdf . They desperately needed to sell assets to remain solvent, but when everyone wants to sell all at once, and nobody wants to buy, the result is a death spiral: Falling prices require ever more asset sales, which in turn produce ever steeper price drops and further asset sales. This vicious cycle eventually transformed an ordinary recession into something far more threatening—a banking crisis recession. .. http://www.motherjones.com/politics/2013/09/austerity-reinhart-rogoff-stimulus-debt-ceiling

and the 2nd

How Washington has choked off the recovery .. this bit ..

The stimulus spending peaked around the middle of 2010, which is when the total number of government jobs began to decline. Had this been a normal recovery, the number of government jobs would have continued to tick upward as the economy improved and tax receipts bounced back. The deep real-estate bust cut sharply into tax receipts at many state and local governments, however, and helped keep the whole economy depressed. That’s one of the things the Fed has tried mightily to turn around, by forcing interest rates far below normal levels. It finally began to work in 2013, with a housing recovery now firmly underway. That’s one reason the Fed recently said it would pare back the bond purchases that constitute quantitative easing, with the whole program possibly coming to an end within a year or so. .. http://finance.yahoo.com/blogs/the-exchange/how-washington-has-choked-off-the-recovery-190355229.html

the link with those, again .. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=95191447

.. brought back the 'public vs private' stuff .. one way to put it .. 'private spending'
the only one good vs spending is spending is good, in some economical situations ..

by memory there were a couple on that which i should have included in the one you replied, so three here ..

Five On The Floor .. excerpt ..

For those who don’t know or don’t get the paradox of thrift, it’s actually very simple: if people (or the government) cut their spending, and the Fed can’t offset this move by cutting interest rates, the economy will contract — and the economy’s contraction will reduce the incentive to invest, so that investment actually falls.

I know that many economists just refuse to accept this proposition, which seems absurd to them. But what, exactly, is their alternative? If you believe that a cut in spending under current conditions — it doesn’t matter whether it’s public or private spending — leads to more rather than less investment, what is the mechanism? How does my spending cut give businesses a reason to spend more rather than less (other than via the confidence fairy)? Remember, interest rates can’t fall — the zero lower bound isn’t a theory, it’s a fact, and it’s a fact that we’ve been facing for five years now.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=93041265

and

"As far as creating aggregate demand is concerned, spending is spending"
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=83109301

and

no, shermann, quite the opposite .. lack of public and private spending and investment .. public and private saving more, because this depression was not a normal economic overheating business cycle recession where inflation increases and Fed raises interest rates to kill it so then recession, as in the early '80's .. the latest recession was a financial asset explosion and bust, leading to an asset price collapse .. so public and private saved/are still saving instead of spending .. GOP austerity policies, of course, added to the House GOP Caucus Room Restaurant decision to oppose every bill Obama puts forward .. so job bills .. poop .. GOP austerity policy which long before had proved to fail .. still in spite of the conservative, maybe even treasonous behavior, the US recovery puts Europe's to shame .. in spite of .. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=94539115

i added a couple of commas and corrected a spelling mistake in that one ..