Tuesday, November 25, 2008

Rehab

The second theorem on how to jolt the world and US economy back to life is being touted - cutting interest rates especially in larger national economies.

The first theorem is to bailout and throw moon sized money loads at it.

Gulf News: Economies need tax cuts to limit financial crisis impact: OECD
The world's largest economies need further interest-rate reductions and tax cuts to limit the impact of the global financial crisis, the Organisation for Economic Cooperation and Development (OECD) said.
Then there is the third theorem - nobody is going to spend their money.

Reuters: U.S. economy contracting, slow recovery seen: OECD
The U.S. economy has probably slipped into a recession that will last through the middle of 2009, and recovery will be slow as consumers cut spending to rebuild lost wealth, the OECD said on Tuesday.
Rebuild our wealth - in six months - I don't think so.

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