“Second Thoughts On Stimulus”

From “The Daily Reckoning” in an article regarding the stimulus, TARP II and the supposed loss of confidence in the economy being a big issue.

“Or, as economist Dr. Roger Garrison writes in a chapter on the Austrian theory of the business cycle, “The loss of confidence comes from the realisation that the economy is overextended, asset values cannot be supported, and decisions about how to allocate capital have been based on a false cost of capital and the false level of demand it ‘stimulated.’ You don’t fix any of that with new stimulus.”

Consider that thought when the government tries to help restore confidence in our economy by printing money and throwing it at the banks.

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