If our nation is in financial crisis why do we still spend billions on foreign policy & other crap we not need?
- Anonymous1 decade agoFavorite Answer
why do you keep asking this same question?
- CRFILv 61 decade ago
During 2007-2008, the world had became already witness of continuous, unprecedented in scale and in nature but finally unsuccessful interventions by the State authorities and central banks of the most powerful capitalist economies and imperialist countries in the world, in North America, Europe and Asia, to halt the unfolding crisis and its systemic dangers. Hundreds of billions of dollars, euros and yens were injected in the banking system, an expansionary monetary policy of interest rates cuts was followed by the US Fed and other central banks, fiscal stimulus, i.e. tax cuts favoring the rich in trouble, were introduced but the spiral of the world crisis continued to unfold threatening the entire system.
After the Lehman Brothers debacle, the Paulson $700 billion plan was urgently introduced to buy “toxic assets» relieves the financial system from their destructive burden. It was finally voted in Congress without avoiding a political crisis- and without convincing that the plan will be ultimately effective. Even from this sum, $250 billion had urgently to be re-directed to re-capitalize and partially nationalize the 9 strongest US banks. The Paulson Plan attacks as the main problem illiquidity while the true core problem is insolvency. Securitization dispersed globally the risks and made bankruptcy dangers opaque, destroying thus any creditworthiness and freezing the credit lines. Lending by banks was over-extended, sometimes 60 times more than their assets, making them now candidates to file for bankruptcy. The Paulson Plan gives some temporary relief to the Wall Street magnates while the taxpayer ‘Main Street’ has to pay the bill. It transfers another part of the huge private debt to the public debt of an already over-indebted AmericaSource(s): http://www.mtl-fi.org/ http://www.pco.org.br/ http://www.pclavoratori.it/files/index.php http://www.iscimucadelesi.net/ http://www.eek.gr/ http://www.po.org.ar/ http://www.opcionobrera.org/ http://grupodeaccionrevolucionaria.cjb.net/
- sparkyLv 41 decade ago
Are peoples memories really that short? It was only frigin a couple weeks ago. Remember who was the hold outs on passing the bailout? Remember that small minority group in the House that refused until they were practically forced to go along, even then some didn't. It was the House Republicians. The Senate including both are choices of president folded like a french soilders. They all are corrupt, that includes your new president elect.
- -Lv 61 decade ago
Cause the people in the government are the MOST inept people when it comes to fiscal responsibility. The problem is that $$$ = votes, and the only thing your average politician cares about is getting reelected.
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- TryadLv 41 decade ago
Because of political gain.
- 1 decade ago
Because liberals want to help everybody.
- Anonymous1 decade ago
Mainly because you have had a idiot for President the last 8 years, how could you people vote him in