Monday, November 10, 2008

Keynes alive and well.

"Nov. 9 (Bloomberg) -- China announced a 4 trillion yuan ($586 billion) stimulus plan to spur expansion in the world's fourth-largest economy, helping sustain global growth as the U.S., Europe and Japan teeter on the brink of recession.
The funds, equivalent to almost a fifth of China's $3.3 trillion gross domestic product last year, will be used by the end of 2010, the Beijing-based State Council said today on its Web site. China will adopt a ``pro-active fiscal policy'' and pursue a ``moderately loose'' monetary policy, it said."

"(NY Times) The Bush administration was overhauling its rescue of the American International Group on Sunday night, according to people involved in the deal, amid signs that the interest on its current credit line of more than $100 billion was putting too much strain on the ailing insurer."

...MARKETS AND GOVERNMENTS ARE COMPLEMENTARY INSTITUTIONS. WRITE THAT ON THE BOARD ONE HUNDRED TIMES...