Wednesday, February 11, 2009

My Sandwich, and an Economics Question

I want to eat this (scroll down for the double, the true object of my desire).

Also, does anyone think that tax cuts are going to be as government effective as spending in an economy where people are frightened, confused, uncertain, and facing next-to-zero interest rates which cripples the fed's ability to close the gap between capacity and output?

(Usually lowering interest rates incentivizes investment today over investment tomorrow, and in any reasonably normal credit market companies start requiring more services/goods/materials from each other...but the fed controlled rate is now in a band between 0 and 0.25%, and credit spreads, or risk premiums, are only now starting to come down from apocalyptic to huge.)

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