Barker, that's a perfectly valid argument from a Keynesian counter-cyclical financing perspective. It's the traditional 20th century way of looking at things, and I am amazed by the number of intellectual friends (but not economics professors...) who think it's a given.

From an Austrian school perspective, we will simply be throwing more distortion into the market, and we would be better to swallow the pain and make something substantive and solid arise from the ashes. They argue that what is happening is inevitable, and it is made much worse by all the years of counter-cyclical financing.

I'm becoming more Austrian by the day. I simply don't think that the way out of credit bubbles and massive debt problems is to spend more. It's not the way I would get out of debt. I think the first way to get out of this worldwide situation is to accept that chronic spending and credit are too blame and become responsible about it.

And yes, it will hurt like **LL!

MR