In response to:

How Liberals Argue: Food Stamps Stimulate the Economy

Dread Wrote: Nov 29, 2012 6:26 PM
[The recession is a derivative of monetary policies that distorted the markets and instead of allowing itself to correct, the elite desire to prop up overvalued industries.] Sadly, no. The recession was caused by a market failure fueled partially by Federal Reserve interest rates, an unregulated derivatives market, irresponsible lending (Because it was so damn cheap), outright fraud, and irresponsible home buyers that believed the honeyed words of the mortgage brokers and talking heads telling them that housing prices were just going to keep going up. And let's also throw in wage stagnation for good measure, as more and more people kept trying to stay in the Middle Class by borrowing on credit cards and home equity.
Emmet Wrote: Nov 29, 2012 6:47 PM
Sadly, yes. I don't see any government regulations since the meltdown that targeted to plug the loophole. All I can see are measures that enhanced and widened the loophole, and you and your socialist comrades called that the required "regulations". La la la land ....
nawlins72 Wrote: Nov 29, 2012 6:34 PM
"Sadly, no. The recession was caused by a market failure fueled partially by Federal Reserve interest rates, an unregulated derivatives market, irresponsible lending (Because it was so damn cheap), outright fraud, and irresponsible home buyers that believed the honeyed words of the mortgage brokers and talking heads telling them that housing prices were just going to keep going up."

How did lending get "so damn cheap"? That's right. Fed policies. Where was the flood of money coming from? That's right. Fed policies. Krugman even wrote pre-Recession, that Greenspan should create a housing bubble to stimulate the economy. And all of these government agencies distorting the market is "market failure". Uh huh.

Every Thursday morning I go on the Jon Justice show in Southern Arizona. Today, I made a comment about the glorification of food stamps and apparently that sparked a deluge of calls like the one below in which the caller argues welfare stimulates the economy.

Considering Minority Leader Nancy Pelosi thinks the same way, I'm not surprised.

"It's the biggest bang for the buck."