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A comment on Every $1 spent on food stamps resulted in $1.73 in GDP growth. Parent comment

Re:Every $1 spent on food stamps resulted in $1.73 in GDP gr... by bryanlarsen on Thursday February 23, 2012 @01:40PM (#3626109)
That would be true if banks weren't reducing their ratios at the same time. Because their percentage of bad debts is going up, they have to reduce their lending to keep their bad debt to capital ratio at the same level. Even worse, their trying to improve their ratios because they now realize they had let them get out of hand during the boom.
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Re:Every $1 spent on food stamps resulted in $1.73 in GDP gr... by onemoreact on Thursday February 23, 2012 @02:21PM (#3626292)
The 'classic' great depression view of the monetary system is horribly outdated in large part because most people don't get their money by farming land, but the lending market has also shifted. Secularization, Car Loans and Credit Cards have greatly shifted the banks roles in the overall lending market.
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