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Id just like to point out that no one is "giving" 700B to anyone. The government is proposing becoming a "market maker" or buyer-of-last-resort for distressed assets (ie high-risk securities backed by not-so-great mortgages).
If it saves the system, the long term benefits far outweigh the short term ramifications. I don't think anyone wants to live in an illiquid economy, that means ONLY the rich will have anything. If businesses don't have easy access to credit, the first thing they do is fire people. If people don't have access to credit they don't buy homes or cars or appliances.. or anything other than the basic necessities. But lots of people wouldn't be buying anything since they would be unemployed.
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I died.
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