Print More Money! Oh wait…. UPDATED: Now, With Zombies
Here is your brain on liberal fiscal policies:
California’s controller says he will begin a 30-day delay on tax refunds and other payments starting Feb. 1 because the state is running out of money.
The solution, of course, isn’t to cut spending, scale back on largess and live within one’s means. The solution is to print more money. Why won’t the Feds do this? Oh right, they are printing more money. They print it and now own the banks that house the money they print.
You know what’s great about this? We are becoming just like Europe. Maybe they’ll like us now.
From Business Week, this scary scenario:
Zombies. Seen one lately? If not, you may soon, because they are about to menace the U.S. economy. In financial lingo, zombies are debtors that have little hope of recovery but manage to avoid being wiped out thanks to support from their lenders or the government. Zombies suck life out of an economy by consuming tax money, capital, and labor that would be better deployed in growing companies and sectors. Meanwhile, by slashing prices to generate sales, zombie companies can drag healthier rivals into insolvency.
Sometime in the past few months, zombies went from being a latent risk to a genuine threat–one that is likely to increase in the months ahead. The Bush Administration has already ladled out billions of dollars in assistance to weak banks and automakers. As the economy goes into what may become the worst economic downturn since the Great Depression, the Obama Administration will come under even more pressure to prop up sick financial and nonfinancial companies to save jobs. The debate will center on wounded giants such as Citigroup (C), General Motors (GM), and insurer American International Group (AIG). Other sectors with their hands out include steel, airlines, retail–and homeowners, who may be the scariest zombies of all.
It will get worse. No one, it seems, wants to endure the pain that comes from undoing trouble that took a long time to create.