Quote:
Originally Posted by adultspeech
The Obama Administration knows this. It's Econ 101. If one can restore confidence, then money will enter circulation faster than if circulation were reliant on basic needs alone. The very act of passing a stimulus plan will, hopefully, have some effect on confidence. This is why there is a sense of urgency from the administration.
Confidence is key.
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"Confidence" plays a short term, minor role. the actual mathematics of inflation and debt are what matter over the long term. people aren't going to make bad investments, invest in a tanking currency and/or economy for the long term because Obama gave a speech. that's not how financial markets work.