government spending

[sweetwater]

maybe someone on this forum
can explain

how government spending
leads to a collapse
of the financial markets

and whether the stock market
will always have to be bailed out
by public money

?????????????????????

[stilltrucking]

It beats me. What do you think?

Okay maybe I do have an inkling, but not really all I know is what I read in the newspapers.
I think it is the financial markets bring down governments not the other way.


I do like what Paul Krugman had to say about what is happening in Ireland. Same could be say for the USA I think. But worse.

"What we need now is another Jonathan Swift."
Eating the Irish



O.K., these days it’s not the landlords, it’s the bankers — and they’re just impoverishing the populace, not eating it. But only a satirist — and one with a very savage pen — could do justice to what’s happening to Ireland now.

Before the bank bust, Ireland had little public debt. But with taxpayers suddenly on the hook for gigantic bank losses, even as revenues plunged, the nation’s creditworthiness was put in doubt. So Ireland tried to reassure the markets with a harsh program of spending cuts.

Step back for a minute and think about that. These debts were incurred, not to pay for public programs, but by private wheeler-dealers seeking nothing but their own profit. Yet ordinary Irish citizens are now bearing the burden of those debts.

Or to be more accurate, they’re bearing a burden much larger than the debt — because those spending cuts have caused a severe recession so that in addition to taking on the banks’ debts, the Irish are suffering from plunging incomes and high unemployment.

But there is no alternative, say the serious people: all of this is necessary to restore confidence.

http://www.nytimes.com/2010/11/26/opini ... ugman.html