The government intervention in housing sector, banking and other liquidity based sectors is inevitable. Banks are howling to the central bank for deeper rate cuts. If government does not give help, these sectors can continue to suffer in the future, due to low cash and lower spending. Government stimulus is necessary to improve the market sentiment and also infuse liquidity so that businesses have enough cash for daily consumption and expansion. Government intervention is imperative for the businesses to continue growing.
The government has the cash and resources to get back the economy back on track and they should take all necessary measures to do that.
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