Quote:
Originally Posted by afc wimbledon
You need to go back and read your history again, the initial US goverment response (and every other goverment as well) in early thirties when the market crashed was to cut back massively on goverment spending, under Hoover (hence the term 'Hooverville' for the camps of homeless that lived by the railway tracks) it is considered a large reason the recession deepend into a depression...
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Also see Ireland.
They revealed austerity measures in November and their 10 year bond rates were 8%. In between then and now, rates further spiked to 14% in July and have now settled at 10%. The market doesn't seem to have confidence in troubled nations adopting austerity measures.