Senate Bypasses Burning Big Pile of Cash, Passes Stimulus Packadge Instead
Today, in a move that many of us saw as it circled the drain and crossed the threshold between Bill and Law, effectively squandering $170 Billion of the government’s hard-taxed, and hard-printed cash, the Senate passed the House-approved stimulus package to give almost every American a fat, though entirely non-permanent, check in the mail. This move by our nice statesmen, while appearing to be fairly positive, is nothing more than an attempt by the politicians in the Senate to advertise their generosity to the average American, who gives no thought in their daily life to the intricate economics of American finance, to connect themselves somehow to the short gratification that each American will receive when they open that letter, not thinking of the inflation that the money will cause, or the fact that the money will not actually help with any of our recession problems. And so as you yourself open these checks, think about the process, think about our ever-mounting loans turning into ever-mounting debt, and think about the waste. And please, please, put the money to a real and purposeful use.
Filed under: Aryeh, Congress, Economy, Featured Stories
The worst part of it is that it’s YOUR generation that will need to pay this money back in a few years, with interest!
I found your site on technorati and read a few of your other posts. Keep up the good work. I just added your RSS feed to my Google News Reader. Looking forward to reading more from you.
Matt Hanson
Any benefit short term as it will be, will occur after the election. A general rule about changes in the economy is that it takes at least 6 months for any changes good or bad in the economy to be felt and measured in the economy as a whole.
The Recession might be over by then but not before the crisis moves from Subprime lenders to Prime lenders.
Prime Lenders are lenders who made loans to people with good credit. However any Prime borrower who has to sell their home for what ever reason new job in an other city, lost their job can’t make mortgage payments, just want to move etc will now have to sell at a loss or just stop making payments.
Because the Greenspan/Bush housing market is full of subprime lender homes on the market which is driving down the price of everyone’s home. Right now home supply is greater than home demand at current prices.
This Stimulus Package is doing nothing about that.
I think the purpose of the Stimulus is to make Americans feel better about their tax dollars being used to bail out the banks who loaned money at 10 - 1 leverage to Hedgefunds so that the Hedge funds could buy subprime loans from the banks.
So for every dollar of collateral the hedge funds had the banks loaned them $9. This perpetual motion er money machine only works if the Hedges keep making enough money in an up market to cover their loans.
The problem is the market is down so the Hedges we think can’t make their loan payments. The Hedges do not have to report their financial results like normal companies do they only report when they claim like Enron used to that they made money.
So nobody really knows how big the problem is, but rather than help homeowners who are losing their homes Bush I’m sure will bail out the banks the same way his dad did for the Savings and Loans.
But we are all suppose to feel better about that after we get a rebate check.
This stimulus package is bribery done on the cheap, heck I feel insulted.
Business Lobbyists to Congress paid for by Corporations are running our country’s economic policy for both Democrats and Republicans. This Stimulus package has their stink to it.
I can’t find even a GOP talking head economist who likes this stimulus package.