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<blockquote data-quote="Umbran" data-source="post: 7990123" data-attributes="member: 177"><p>Note that the European way of handling has been sort of supply side - pay the employers to keep employees on the payroll. The trick is to <em>control</em> how that money is used, rather than to hand a company cash to use as the stockholders and executives want.</p><p></p><p></p><p></p><p>For a while, if the lender in question is sitting on a bunch of cash so that it doesn't need the income, it can be done. And if the economic dislocation lasts more than six months (or however long the bank's cash stockpile holds up)... well, it will suck for people with mortgages.</p><p></p><p>In the end, there are two things to be aware of:</p><p></p><p>1) Economies work not on the existence of money, but on the <em>flow</em> of money. If you stop money flowing, you will have a downstream problem, without fail.</p><p></p><p>2) Whatever the stock market claims, in the end, wealth is based on creating things that people use - goods, services, entertainment, energy, and the like. Only about one-third of our people can do their jobs from home. Keeping the others home keeps them from producing wealth, which then keeps money from flowing.</p><p></p><p>So, what we really need to consider is short to medium term* management techniques for keeping money flowing as efficiently as possible**. We have to pick them carefully, not glibly. The techniques used have to take downstream effects into account, or some folks (typically poor ones) will get screwed.</p><p></p><p>Why we can't seem to effectively do that now is a subject of politics, so here I have to stop.</p><p></p><p></p><p></p><p></p><p></p><p>*Nothing really saves an economy from long-term stoppage. </p><p></p><p>**For me, it needs to flow to people who actually need it. People already sitting on gigantic money sinks are not my personal concern at this time.</p></blockquote><p></p>
[QUOTE="Umbran, post: 7990123, member: 177"] Note that the European way of handling has been sort of supply side - pay the employers to keep employees on the payroll. The trick is to [I]control[/I] how that money is used, rather than to hand a company cash to use as the stockholders and executives want. For a while, if the lender in question is sitting on a bunch of cash so that it doesn't need the income, it can be done. And if the economic dislocation lasts more than six months (or however long the bank's cash stockpile holds up)... well, it will suck for people with mortgages. In the end, there are two things to be aware of: 1) Economies work not on the existence of money, but on the [I]flow[/I] of money. If you stop money flowing, you will have a downstream problem, without fail. 2) Whatever the stock market claims, in the end, wealth is based on creating things that people use - goods, services, entertainment, energy, and the like. Only about one-third of our people can do their jobs from home. Keeping the others home keeps them from producing wealth, which then keeps money from flowing. So, what we really need to consider is short to medium term* management techniques for keeping money flowing as efficiently as possible**. We have to pick them carefully, not glibly. The techniques used have to take downstream effects into account, or some folks (typically poor ones) will get screwed. Why we can't seem to effectively do that now is a subject of politics, so here I have to stop. *Nothing really saves an economy from long-term stoppage. **For me, it needs to flow to people who actually need it. People already sitting on gigantic money sinks are not my personal concern at this time. [/QUOTE]
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