Monday, June 8, 2009

Obama, facing high unemployment, defends stimulus



This is good news for the markets and investors. Obama, facing pressure that job creation is not happening, is (hopefully) shelving spending cut plans for now in favor of stimulating the economy further. He needs to see job creation or his approval ratings and political "capital" will erode.

2 comments:

googleheim said...

Don't balance budgets, instead shift monies to where it is known the multiplier effect works best as pointed eons ago at Norman's blog last year.

Don't TARP or Stimulate those constructs which put USA back on old path of weak dollar to EURO / GBP etc, oil over speculated, financial manipulations ...

How about finally bulk of TARP and stimulus to small business and not into the legacy creatures like big business that stiffles multiplier success

Did any TARP or stimulus go to the EU financial institutions ?

...

does any one know if the FSLIC ( savings and loan version of FDIC )
in the 80's was funded by taxpayers or federal crediting of banks ?

many references indicate tax payers were on the hook for this Republican't fiasco of the 80's ...

but I just want to make sure since the FSLIC was finally abolished but not before being funded several times - either by taxpayers or by credits.

It would be ironic if this was actually paid for by taxpayers during a time that the glorious Reagan tax cuts created the very S & L crisis which taxed them to the gilt !!

Mike Norman said...

Yes, and TARP is not stimulus; it is merely a reshuffling of assets. It creates a new asset and a new liability. No new wealth is created. Spending is different as it raises income/savings to the non-governmental sector, however, Treasury is quietly contracting net spending as per my chart in the post above.