YAY! More "stimulus"...

**wil** · July 7th, 2009, 09:54 AM

Since the first one is doing such a wonderful job…

Quote:

U.S. should plan 2nd fiscal stimulus: economic adviser
By Vidya Ranganathan, Reuters
7 hours ago

SINGAPORE — The United States should be planning for a possible second round of fiscal stimulus to further prop up the economy after the $787 billion rescue package launched in February, an adviser to President Barack Obama said.

"We should be planning on a contingency basis for a second round of stimulus," Laura D'Andrea Tyson, a member of the panel advising President Barack Obama on tackling the economic crisis. said on Tuesday.

Addressing a seminar in Singapore, Tyson said she felt the first round of stimulus aimed to prop up the economy had been slightly smaller than she would have liked and that a possible second round should be directed at infrastructure investment.

"The stimulus is performing close to expectations but not in timing," Tyson said, referring to the slow pace at which the first round of stimulus had been spent on the economy.

Tyson, who is a dean of the Haas School of Business at University of California, Berkeley and was also a White House economic adviser to former President Bill Clinton, said an additional factor affecting the stimulus was that the economy was in a far worse shape than the administration had estimated.

INFLATION NOT A CONCERN

Tyson dispelled concerns about the ballooning U.S. fiscal deficit that is estimated to hit nearly 10 percent of gross domestic product, and its possible inflationary consequences.

"The Federal Reserve is not going to allow the U.S. to inflate away its debt," she said.

Asked about the value of the dollar, Tyson said the market was wrong to be concerned about inflation in the U.S. economy, given the amount of slack in most industries.

"It is almost in no one's interest to have a sharply spiraling downward dollar," she said. The dollar ought to decline in the longer term on a trade-weighted basis but she did not anticipate a sharp and sudden decline.

Turning to the Federal Reserve's near-zero rates policy and credit easing, Tyson said inflationary expectations remained "well-grounded", giving policymakers room to pursue these expansionary policies.

She said she was also not worried about whether the Fed can exit such a policy. "The Federal Reserve has the ability to make rapid adjustments in its balance-sheet as necessary."

But Tyson said the combination of near-zero interest rates and heavy debt issuance would keep the U.S. yield curve steep. And, while the rate at which the economy was contracting had fallen, the latest jobs data showed the economy was still not stabilizing.

U.S. unemployment rate hit 9.5 percent in June, the highest in nearly 26 years.

(Editing by Jan Dahinten)

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**A1food4U** · July 7th, 2009, 10:14 AM

What we really need is to figure out how to role back time and actually "Build" things here again. An entire economy based on service industries and Business office hockus pockus is doomed to fail. And YES, i am one of thos service industry people....

**SAINT_X** · July 7th, 2009, 10:20 AM

Some pretty credible people think that the stimulus ( and lets not forget who drove the economy into the ditch ) should be expanded.

Economist: Obama Stimulus Not Enough - Face The Nation - CBS News

This issue certainly is debatable though...valid points on both sides. That's what makes it so tough I think.

**varbo** · July 7th, 2009, 10:35 AM

It's all bush's fault!

I beat you wil!!!!!!! BUWAHAHAHAHAHA!

I am evil Varbo, I am evil Varbo!

**wil** · July 7th, 2009, 10:44 AM

Quote:

Originally Posted by varbo

It's all bush's fault!

I beat you wil!!!!!!! BUWAHAHAHAHAHA!

I am evil Varbo, I am evil Varbo!

How did you know I was going to post that???? Your superpower must be mind-reading.

**wil** · July 7th, 2009, 10:58 AM

Quote:

Originally Posted by SAINT_X

This issue certainly is debatable though...valid points on both sides. That's what makes it so tough I think.

Wait... you are actually conceding that there could be valid points that are not the same as yours???? Is fatherhood turning you soft?

haha... j/k... sure there are valid points on both sides...

I heard someone the other day commenting how that if the gov't really had to spend more taxpayers' money, then instead of all the new pet projects the money should have gone to fund projects that have already been planned but lacked the funding... you know... things that are actually necessary like fixing bridges and roads, improving schools. That kind of stuff is ready to go NOW and would employ a lot of people NOW.

But instead we get a whole new slew of BS like a tunnel for turtles to walk under a roadway or a train to Disneyland.

The whole thing just sucks.

**Chopper_Dave** · July 7th, 2009, 11:04 AM

Quote:

Originally Posted by wil

But instead we get a whole new slew of BS like a tunnel for turtles to walk under a roadway or a train to Disneyland.

The whole thing just sucks.

And don't forget Nancy Pelosi's private jet.

**RunningMan27** · July 7th, 2009, 11:12 AM

I am not sure how I feel about the stimulus.

I have yet to use my stimulus money to buy anything - both checks have gone virtually straight into a money market account and have sat there gaining interest ever since. I can't see how that helps anyone, particularly 4 of my very good friends who have been without work for quite sometime now.

I am sure there are people out there who use this money to buy something - maybe a TV or some other larger item to boost sales, profits, etc... The reality is that some of these folks should be paying down their ridiculously large credit card debt.

I think the only way the stimulus will truly work will be if every one who receives a check goes out and buys something immediately. Will a sudden increase in sales really boost the economy to provide jobs to people who need them? I still can't grasp that happening...

I think I'm leaning towards no stimulus.

**Chopper_Dave** · July 7th, 2009, 11:50 AM

Let's cut through it. What this so called stimulus really is, is a ploy to pander to the "something for nothing" demographic. I (the government) just gave you some free cash! Don't you love me now?

It was first established during the last administration as a bonus for working tax payers. The current administration merely expanded it to every one who "qualified" under their new guide lines.

**mooshue** · July 7th, 2009, 11:59 AM

you all need to hear a song by Marilyn Manson called Were From America, it's on his new album. I think the words sum up our supposedly great nation of jerkoffs.
Im just going to enjoy the ride until all the lazy fat american idiots implode on themselves, then i'll mosey on down to mexico with all my shit and live on the beach with Jessee Ventura.

**SAINT_X** · July 7th, 2009, 12:44 PM

Quote:

Originally Posted by Chopper_Dave

Let's cut through it. What this so called stimulus really is, is a ploy to pander to the "something for nothing" demographic. I (the government) just gave you some free cash! Don't you love me now?

It was first established during the last administration as a bonus for working tax payers. The current administration merely expanded it to every one who "qualified" under their new guide lines.

\

By "something for nothing demographic" I assume you mean Wall Street,...so called self made men????

**Chopper_Dave** · July 7th, 2009, 12:55 PM

Quote:

Originally Posted by SAINT_X

By "something for nothing demographic" I assume you mean Wall Street,...so called self made men????

Actually, I was referencing the people who subscribe to get rich schemes, exist on the government dole, or play the lottery/gamble as a sole source of income.

**wil** · July 7th, 2009, 01:55 PM

Quote:

Originally Posted by RunningMan27

I am not sure how I feel about the stimulus.

I have yet to use my stimulus money to buy anything - both checks have gone virtually straight into a money market account and have sat there gaining interest ever since. I can't see how that helps anyone, particularly 4 of my very good friends who have been without work for quite sometime now.

I am sure there are people out there who use this money to buy something - maybe a TV or some other larger item to boost sales, profits, etc... The reality is that some of these folks should be paying down their ridiculously large credit card debt.

I think the only way the stimulus will truly work will be if every one who receives a check goes out and buys something immediately. Will a sudden increase in sales really boost the economy to provide jobs to people who need them? I still can't grasp that happening...

I think I'm leaning towards no stimulus.

Yeah... Bush's 2008 "stimulus" was basically a cash giveaway to taxpayers. It really didn't accomplish much besides adding to the federal deficit. I thought it was stupid back then and I still do. That was a waste of $170 billion. Bush opponents (and many conservatives like me) were not happy.

Obama's 2009 "stimulus" doesn't even give money to most taxpayers. It gives lots of money to special interests (corporations, unions, community organizers) and even more to gov't agencies so they can spend it on their favorite special interests. This is a waste of $787 billion. Well... a waste unless you are a corporation, union, community organizer, or gov't agency.

The conservatives who were not happy with Bush's stimulus are now 4 times as unhappy. But the Bush opponents who trashed his waste of $170 billion are predictably silent now.