I would have liked to see a stronger stimulus plan. Economists argued that in order to see a substantial effect, it would have had to have been a larger percentage of GDP, which makes sense to me. But on the other hand, it is an experiment and I can understand not wanting to take a bigger risk. You spend enough to really nudge the economy (which is a big beast indeed) and you are running a bigger risk. If it doesn't pay off, there isn't revenue growth to cover the bet, just like with the bailouts there was the risk that loans aren't getting repaid and stock won't be worth anything. So instead of going big, they made a bet to cover the spread and seem to have been rewarded with a minimal return. Hopefully things will chug back along and get on track but my bearish instincts tell me that without the bigger nudge, recovery is going to be slow going indeed.
Judah On Mon, Apr 26, 2010 at 2:32 PM, Robert Munn <[email protected]> wrote: > > I'm with you on that. The TARP and the stimulus prevented the economy > from flatlining, but long term growth comes organically and until the > employment picture improves we're not going to see big growth. > > On Mon, Apr 26, 2010 at 11:32 AM, Judah McAuley <[email protected]> wrote: >> >> Roar seems a bit overenthusiastic to me. The stimulus and jobs bill >> helped keep the bottom from completely dropping out but didn't do a >> huge amount to spur demand since it was such a small percentage of >> GDP. It's nice to see demand growing again but until employment >> actually picks up again (unemployment is a lagging indicator), I'm >> dubious about the strength of the recovery. >> >> I'll credit Bush and Obama on the bailouts and Obama on the stimulus, >> they basically kept the wheels on and seem to have been managed >> reasonably well. The pay back from the bailouts is coming quicker than >> I expected, but my expectations were really low. I hope that things >> continue to go in a positive direction and the recovery picks up >> steam. We shall see. I'm pessimistic about the economy. >> >> Judah >> >> On Mon, Apr 26, 2010 at 11:18 AM, Robert Munn <[email protected]> wrote: >>> >>> economy set to roar, according to nyt: >>> >>> http://www.nytimes.com/2010/04/26/business/economy/26econ.html >>> >>> stimulus not responsible, according to survey of economists: >>> >>> http://money.cnn.com/2010/04/26/news/economy/NABE_survey/ >>> >>> but roubini is still bearish: >>> >>> http://www.moneycontrol.com/news/fii-view/nouriel-roubini-sees-downside-risk-to-economyh2-cy10_447262.html >>> >>> >> >> > > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Want to reach the ColdFusion community with something they want? Let them know on the House of Fusion mailing lists Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:316685 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/groups/cf-community/unsubscribe.cfm
