The $825B & $447B Economic Stimulus Packages

[Dutchcedar]

^^^ Rumor has it that a couple of Republican senators are gonna flip... just enough to get 'em to their magic vote of 60. Whoever does should be tarred and feathered.

Let the Democrats own it... entirely.

[AMDScooter]

^^^ Rumor has it that a couple of Republican senators are gonna flip... just enough to get 'em to their magic vote of 60. Whoever does should be tarred and feathered.

Let the Democrats own it... entirely.

Agree.. ride them out of town on a rail.


"Stimulus" or Democratic "Trickle Down"

If you need just one reason to oppose the so-called "stimulus package" being offered by Democrats, the fact that economic geniuses such as Nancy Pelosi are writing it should be enough.

For instance, here are Pelosi's thoughts on what has the most stimulative effect on an economy:

Food stamps and unemployment insurance will provide more economic stimulus than tax cuts, House Speaker Nancy Pelosi said Tuesday during a telephone press conference.

“(F)ood stamps and unemployment insurance, which affect the people in the states, are necessary at this time when funds are short and the economy is down, (and) actually have the most stimulative effect on the economy,” Pelosi said. “Food stamps first, unemployment insurance next, infrastructure after that, and it goes on from there.”

“Actually, those investments bring a bigger return than the tax cuts,” she said, adding: “but tax cuts where we have them – to the middle class – we think will give us our biggest return.”

Meet the captain of the ship of fools.

The best way to battle unemployment is to provide jobs, not subsidize it. And the engine of job creation? Well naturally that engine would benefit immensely from tax cuts and certainly have an incentive, then, to create jobs.

But Pelosi would much rather spend first. And specifically spend on government programs which subsidize unemployment and poverty.

I guess you could call it the Democratic version of "trickle down" economics.

[jimzinsocal]

Wait a minute. Im stuck on the 600 million for new cars

What a blow job for the UAW and Car Companies



Assume a cost each of 25,000

600000000 / 25000 = 24000 Vehicles

[jimzinsocal]

The Fed Is Doing Its Job, Though I Can’t Say as Much for Washington [Larry Kudlow]

The Fed was very gloomy in its Open Market Committee statement today. It suggested a gradual recovery could begin later this year, although there are plenty of downside risks. The Fed will keep its target rate near zero, and will keep expanding its balance sheet by purchasing plenty of government-sponsored debt and mortgage-backed securities. Its so-called TALF plan to finance consumer-related bonds will begin soon. It might even buy Treasuries, even though it can’t quite make its mind up on that. Taken together, these actions will keep injecting more cash into the financial system.

All of this is reasonably good, and one wonders why the Fed can’t unclog the credit system on its own without new government banks to purchase toxic assets. It’s possible to design a so-called government “bad bank” to buy distressed assets without nationalizing the banks. Team Obama seems to be leaning against nationalization. As Holman Jenkins points out, we know that depositors and creditors are secure. But bank stocks have had a terrible ride because shareholders have no such security.

There’s a lot of talk that a government bad bank could be modeled after something like the old Resolution Trust Corp. But this would require regulatory accounting forbearance of the punitive mark-to-market approach. It could be done if the SEC would work in connection with a new bad bank. And it might help get private investors engaged in buying toxic assets from the bad bank if the capital-gains tax was suspended for a couple of years.

Meanwhile, important forward-looking economic indicators suggest we have seen the bottom — believe it or not.

First and foremost, stocks bottomed in late November and are about 15 percent higher today. Raw commodity indexes have bottomed. 10-year Treasury rates have bottomed and yields today are about 50 basis points higher. Oil prices have bottomed. And the dollar bottomed many months ago. Plus, the Fed’s monetary-base expansion has produced about a $550 billion increase in the M2 money supply, which could start raising the economy as early as this spring.

If the turnover rate of money — that is, velocity — moves back to its 10-year average, then we could all be surprised by a substantial economic rebound starting this spring or summer.

I’m not even gonna mention the goofy stimulus package in Congress, because it’s not gonna stimulate much of anything except a zillion Democratic political-interest groups. This package is completely porked up with massive social spending and other political targets — none of which will create any jobs or growth. It’s just a massive resource transfer.

And the infrastructure bailout turns out to be vastly smaller than originally advertised. In the 1950s, Ike launched a $550 billion highway-building plan. Today’s stimulus package has $30 billion in highway-related projects, and perhaps another $40 billion way down the road for broadband and electric-grid-type developments.

The public expected an infrastructure build-out that actually made some sense. That’s not what they’re getting. And if Republicans keep hammering away at this they are going to make important political points and slow down the Obama train.

In the meantime, the Fed is doing its job. So is the big energy tax cut. As free-market indicators suggest, the economy may well be healing faster than Washington can cobble together the most unmanageable fiscal activity anyone has ever seen.
01/28 04:14 PM

[Dutchcedar]

“(F)ood stamps and unemployment insurance, which affect the people in the states, are necessary at this time when funds are short and the economy is down, (and) actually have the most stimulative effect on the economy,” Pelosi said. “Food stamps first, unemployment insurance next, infrastructure after that, and it goes on from there.”

“Actually, those investments bring a bigger return than the tax cuts,” she said, adding: “but tax cuts where we have them – to the middle class – we think will give us our biggest return.”

That has to be one of the dumbest comments ever. I'm sure its based on solid evidence... gleaned while smokin' crack.

[AMDScooter]

That has to be one of the dumbest comments ever. I'm sure its based on solid evidence... gleaned while smokin' crack.

And people think we're headed for better times with the likes of her at the till??

Meet the captain of the ship of fools.

For sure..

[jimzinsocal]

http://my.placerherald.com/detail/104409.html

[jimzinsocal]

House approves $819 billion economic stimulus bill

[jimzinsocal]

The vote was 244-188.

[AMDScooter]

House approves $819 billion economic stimulus bill

Whats the tally in the house? Vote record up yet?

[Dutchcedar]

By Michelle Malkin • January 28, 2009 06:21 PM

Own it. Embrace it. Swallow it. The House version of the $1.1 trillion Generational Theft Act of 2009 is all the Democrats’ doing now.

Not one Republican voted for it. (1 Republican had to leave early).

177 Republicans and 11 Democrats opposed.

No bending over today.

Finally. A party of opposition worth its name.

And now… on to the squishes in the Senate.

Savor this while you can.

Kudos to the GOP leadership for showing some spine. More, please.

Mega-kudos to the conservative staffers on the Hill behind the scenes standing up for what’s right and providing intellectual and informational ammunition to the grass-roots.

And bailout-sized kudos to each and every one of you who made your voice heard.

Gird your loins. We’ve only just begun.

Its all yours, Democrats.

Let's hope the RINOs in the Senate don't bend over.

[jimzinsocal]

Yeah. Lets hope they all use



Wouldnt want them to develop habit of bending....ouch!

[AMDScooter]

Its all yours, Democrats.

Let's hope the RINOs in the Senate don't bend over.

Sweet... no one bought into the good cop(bamma.. comon lets be pals.. btw.. I won) bad cop(pelosi.. we dun need no repugs input) BS being tossed about. They tried to cram it down the conservatives throats.. now it's all theirs. ALL 177 repugs voted against it. <=== more like this phlueeze!

[jimzinsocal]

Yup. They own it now. Its clear now that the new and "changed" Congress feels we are all too stupid to spend our own money via tax breaks so
the great Uncle in DC will spend it for us.

Im getting excited about the new 24,000 cars our elected clowns will be driving. Im really stimulated.

[AMDScooter]

Yup. They own it now. Its clear now that the new and "changed" Congress feels we are all too stupid to spend our own money via tax breaks so
the great Uncle in DC will spend it for us.

Im getting excited about the new 24,000 cars our elected clowns will be driving. Im really stimulated.

Lets hope they get what they deserve...