Calls for a second stimulus grow.. i predict it should pass by early 2010

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Subprime JD's picture
Subprime JD
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Calls for a second stimulus grow.. i predict it should pass by early 2010

 

Economists and heavyweight Obama backers such as Warren Buffet already are calling for another stimulus, saying the recession proved to be deeper and more devastating than originally believed.

"The economy took away everything they put on the table," said Lawrence Mishel, president of the Economic Policy Institute, a labor-leaning economic think tank.

"We strongly believe we need another stimulus, and we need it now," added Thea Lee, the AFL-CIO's policy director.

http://www.cnbc.com/id/31779047

http://www.reuters.com/article/marketsNews/idUSWAT01159720090707 Rep. Hoyer calls for 2nd package

http://www.foxnews.com/politics/2009/07/07/obama-wont-second-stimulus-option-table/ Obama wont take 2nd stimulus off the table

We need it now!! Sounds like a 8 year old crying for a new toy. If only these people knew the repercussions of a second, third stimulus. I predict that the debate on a second stimulus will begin to grow as unemployment worsens, credit defaults grow, and as more states go the way of California. After the 2009 chrismas holiday season proves to be another disaster the Keynesians will get their way. Probably a second stimulus, this time more infrastructure based as the 1st package was small on "shovel ready" projects.

Any thoughts on if and when a 2nd stimulus will pass?

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joemanc
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Re: Calls for a second stimulus grow.. i predict it should ...

This would potentially be the 3rd stimulus since early last year, the 2nd one under Obama. If you recall, last year was the rebate check. I wonder why all of a sudden everyone seems to have forgotten about the one last year? Maybe, because that didn't work either!

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Subprime JD
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Re: Calls for a second stimulus grow.. i predict it should ...

People forget the first one becuase it was so small in comparison with the bank bailout (800b), Stim 1 (787b). The 165b rebate is chump change compared to the money being spent today. Lets not forget the Feds balance sheet exploding by over a trillion.

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joemanc
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Re: Calls for a second stimulus grow.. i predict it should ...

Your right, $165 billion just doesn't go as far as it used to anymore

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Re: Calls for a second stimulus grow.. i predict it should ...

I guess they will keep stimulating a long as there is anyone dumb enough to lend them the money to do it.  Its great fun for congress because it lets them service lobiest in a way never before possible.  Obama will say something like, "Well look, the absolute amount of government debt isn't whats important here, its important that people be provided a chance to work, and that mainstreet becomes reinvigorated" or some such drivel.

I plan to retive to China where it is becoming a free and capitalist society.  Never would I think that China would look good compared to the USA.  What a huge disappointment.

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Re: Calls for a second stimulus grow.. i predict it should ...
bearmarkettrader wrote:

 Any thoughts on if and when a 2nd stimulus will pass?

Absolutely!  I'm neither a prophet nor the son of a prophet but there is no doubt in my mind that we will have 2nd "stimulus bill" by first 1st/2nd quarter of calander 2010.

There is no reason what so ever to expect that GDP will expand by 2010.  Unemployment will at the very least stabilize at double digits (10%, 11%, 12%?!?!) if not continue to grow into and past 2010.  The current administration has already blown it with their prediction of unemployment peaking at 8.5%.  There is still the second and third waves of the morgage crisis that needs to play out (commercial, Alt-A, and prime).

There will be tremendous political preasure to "do something" prior to the mid-term elections.  A "stimulus package" allows the Gov't to buy votes by passing out candy to the electorate while at the same time expanding control while maintaining democratic majorities in both houses of congress.

If any of that money makes its way into my pocket (ha, ha, what a joke...tax me more, devalue my currency, and then give me a fraction back as if you are doing me a favor),  you can be sure that I'll be putting it immediately into non-dollar denominated assests.

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Subprime JD
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Re: Calls for a second stimulus grow.. i predict it should ...

As the credit losses "unexpectedly rise" the battered financial system will bleed even more. People got too excited during last years horrible christmas season as they figured the retailers would all disappear. The retailer/consumer society is firmly embedded and while take several horrible retail seasons to puncture it. Nevertheless, the next 4 holiday seasons will be horrible which will cause more and more of them to disappear. 2nd stimulus is on its way for sure. Timing is the difficulty.

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investorzzo
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Re: Calls for a second stimulus grow.. i predict it should ...

Yes, got to give the junkie another fix!

 If they had any brains at all up there in Washington, they would be making jobs; renewable industry. Solar, wind, electric, Fusion, and on and on. End our dependence on oil with real jobs of the future. Stop bailing out the banks and wall street......

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Re: Calls for a second stimulus grow.. i predict it should ...

Of course if the Federal Government was representative then the Second Bailout would have died on the Congressional floor, and there would be no talk of a third bailout.

I for one, little chance though there is that I'll be heard, will be writing to my representatives in congress and senate and firmly saying no to any more bailouts.

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DrKrbyLuv
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Re: Calls for a second stimulus grow.. i predict it should ...

Our governBank is looking for another round of "loot the people" even though much of the money from the last bail-out is "un-accounted" for (stolen).  While this is an insane idea rest assured the MSM (controlled by the big banks) will be making a big pitch. 

The 3,000 page bill will arrive from the banking lobbyists around an hour before an emergency vote.  No one will have time to read it, but it will be passed very quickly.  The sheeple will be moved to have another tea party and that will be that.

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idoctor
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Re: Calls for a second stimulus grow.. i predict it should ...

Living in a responsible world went out of style years ago. You guys are so "old" fashioned around here & just don't get it LOL.

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agitating prop
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Re: Calls for a second stimulus grow.. i predict it should ...

There will probably be a second, third, fourth stimulus. At the same time, Americans will start to demand that the borders be closed to some trading partners, particularly China,  and the reindustrialization of the US, kick started. Many will argue that this just will not work, that it's what made the depression so much worse. That's a complete unknown though. The depression may have been worse if borders hadn't been closed to trade.  Nafta may be strengthened under this arrangement or completely undermined. I have the feeling that it will be strengthened and China and the US are going to decouple. Regional trade between Asean countries could operate the same way, with barricades up to other countries.

Imagine the tension between China and the US and the potential for some minor skirmish of some sort, providing the excuse for the U.S. to default on all bonds held by the Chinese.

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npwebb
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Re: Calls for a second stimulus grow.. i predict it should ...
Quote:

Our governBank is looking for another round of "loot the people" even though much of the money from the last bail-out is "un-accounted" for (stolen).  While this is an insane idea rest assured the MSM (controlled by the big banks) will be making a big pitch. 

The 3,000 page bill will arrive from the banking lobbyists around an hour before an emergency vote.  No one will have time to read it, but it will be passed very quickly.  The sheeple will be moved to have another tea party and that will be that.

 

I'm too tired and too lazy to go and get the source article from Bloomberg but as of today it is reported that ONLY 25% of the original stimulus money has been distributed. 

WHAT A JOKE! 

Don't get me wrong.  I am completely against any and all of the "stimulus" programs but it really rubs me the wrong way when these idiots don't even believe in their own ill concieved gimicks enough to give their first attempts a chance to work before they throw more deficit spending down the hole.

Subprime JD's picture
Subprime JD
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Re: Calls for a second stimulus grow.. i predict it should ...

It truly is amazing how our view of economic reality has changed. Just a decade ago most of us (including me) never bothered with the monthly jobs report, the yields on 10 yr treasuries, the rising national debt, the growing trade deficit,et al. Now we sit here on this boards and try to forecast the uncertain and gloomy economic future. I remember in 2002, i was finishing up with undergraduate school. I was preparing for law school entrance exams, thinking about my future as a attorney, about the money i was going to make, the vacations ( i love to travel), basically the normal things people thought about. Now its so different. There is this feeling of unease. I know that job losses will grow, that credit losses and defaults will grow, that the financial system is teetering on collapse. We know that the dollar is being propped up by foreign central banks. There is a possibility that the world wont escape a horrendous war by the time this economic malaise passes over. Moreover we now know about the limits of oil supplies and how the US is so unprepared to deal with high energy costs. We know that our nation is bankrupt. Our biggest and wealthiest state California is currently bankrupt with many more states to follow. The knowledge we have is a blessing and a curse at the same time.

I will be honest, when i saw the S&P hit 950 i felt this relief. I thought to myself, maybe we (the economic blogosphere) freaked out. Maybe we misread the data. But in my heart i knew that it was fake. That all of the money printing, the fudgy mark to market accounting rules, the fuzzy GDP and employment numbers were all released to instill confidence. I know the reality of the situation at hand. All the talk of green shoots makes people feel good. And we all want to feel good, we all want to live a life without extreme hardship. We all basically want to have the opportunity to do the best we can and to be awarded for our work. The feeling that we wont be able to do these things is very depressing and causes great anxiety. But we have no choice but to move on dealing with the cards that life deals us.

The only thing we can do is use our knowledge to our advantage. We have to prepare as much as we can. Hopefully, those that will listen and open their minds and hearts to the truth will be spared by the storm that is rapidly approaching. The storm will come in a form that is impossible to predict at the present time. Nevertheless, the day will come when there will be light at the end of the tunnel. The day will come when we will be able to look towards a brighter future. In the meantime, lets enjoy every day to the fullest. Lets laugh as much as we can, learn as much as we can, make friendships, start families for those who want them, and constantly prepare for the uncertain future that awaits us.

 

Bear

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