Tweet
We know it’s not easy being an economist these days. Everyone blames you for the fact that they are losing their jobs and their homes, and their life savings. They hold you responsible because you didn’t warn the country about an $8 trillion housing bubble.
Well there’s no point in mourning about the past. The point is to get right next time. And this is next time.
The recession continues to deepen and throw more people out of work by the day. While the stimulus passed by Congress in February will be helpful, it clearly is not enough given the severity of the downturn.
So, it’s time to step up to the plate and seize the opportunity. Add your name to the list of those calling for a third stimulus. It’s what the economy needs and you can make kids proud by saying it clearly.
11 Comments
It may be too late for a stimulus (but I will sign). The Republicans have already ruined California. We are teetering on insolvency because they can no longer “borrow” to pay for government, and they have a moral opposition to paying for things with current funds (a.k.a. taxes). Last night, I recieved a robocall from LAUSD announcing that most all summer school progams are being cancelled because the Terminator can only cut services to those without a voice or campaign contributions.
In retrospect, I wish I had given money I donated to Obama to my local schools. The banking lobby will keep Obama’s coffers full.
We need all the stimulus bills that we can get…… Love to throw out what the WWII GI bill did to our economy which did still does not count the generational improvement in our economy.
For every dollar $1- the ROI was $7-8 dollars…… My father and Mother went to college, Mom taught, Dad was a Wildlife Biologist, they had a nice middle class life and raised two daughters, one became a nurse and the other started with an Engineering degree, the silly daughters switched and one became a Psychologist and the other a Software Engineer.
Then I educated my kids, both graduating from ASU, my youngest is two semisters from a Research Biology degree.
My sisters oldest is going to college and majoring in music.
That is one family that used stimulus to create a nice middle class life.
The bulk of the stimulus so far went to the wrong people. If the stimulus goes to the likes of Goldman Sachs and AIG, forget about it. If we wage war against the automobile and create free rapid transit systems above existing railroad or turnpike right of ways, that’s a way to go. We might consider replacing existing waterbased sewer systems with waterless. We need big expenditures for something worthwhile. Not sure the country’s in a mood for it.
I heard a report on NPR on the drive in to work this morning about California’s fiscal crisis and how Ahnold is going to just do away with welfare (there’s a brilliant plan) when it seems to me the obvious answer to a budget shortfall is to bring in more money.
If I can’t make ends meet at home, either my wife or I (or both) need to get a better job or get a second job. Sure working two jobs may suck, but you do what you got to do.
A government might just need to raise taxes at least long enough to dig out. And raising taxes on poor people just isn’t going to raise the kind of money you need — you have to hit up the rich. They’ll whine and moan about it, but you gotta do what you gotta do.
I would LOVE to see better public transportation in this country. I can’t say that strongly enough.
There is no reason that the third stimulus can’t be incorporated into the appropriation bills that are currently winding through Congress. That means that the focus must shift from the bully pulpit of the president to the Congress. Talk about hard slogging.
But it would be nice if the President’s economic team expressed some concern at how slow things are moving.
You have that right!! But here in California you need two thirds vote to raise taxes, a ridicules rule if you ask me. And of course the Minority Republicans will not allow any new taxes, especially on those who can afford to pay more… Think uber Rich contributors to the Republican coffers. We need to get rid of this ridicules requirement for taxes… Yet interestingly enough it looks like a slim majority can take away civil rights of a minority, Prop 8, using that logic shouldn’t we take away the rights of the Republican minority??? This state of affairs here really suck for the common/poor man.
Obama’s $787 billion stimulus is over two years and IIRC something like 40% of it was in tax cuts so not really stimulative. It was supposed to create or “save” 3 million jobs. I suppose this means we can expect 2 million new jobs at most. By the end of 2010 we will have a jobs shortfall (taking into account job losses and jobs needed to keep up with population growth) in the 12-13 million range (from when the recession began in December 2007), minimum. This means the Obama stimulus will create a sixth or less of the jobs needed. And many of the Obama jobs will go away in 2011 when funding for them dries up.
We need a stimulus that is much larger, better designed for future needs of the country, geared almost entirely toward spending and job growth, and for as long as needed. What Obama and the Congress have proposed is like spitting once on a house going up in flames.
masaccio is upstairs!
Bankster Bluster Leads to Legacy Loan Program Fail
So good to see you, Katymine! Hope you’re feeling better.
But, but, what if past performance gives you serious doubts about how the money will be used! I wouldn’t hesitate, since we already knew the last two stims weren’t going to be enough, but the more you give to the banks, the more they demand. The more you say yes to them, the more they insist they need. In the meanwhile, when the Congress passes a law the banks feel will clip their wings when they want to soar, they use predatory strategies to clip their customers, who are really their financiers. Little is really being asked of them as their upper echelons further loot the coffers the taxpayers have filled and are continuing to fill with outrageously high “bonuses” or re-signing fees. Yet they have no compunctions about sticking it to those less fortunate by refusing to do workouts with folks who are still working but their ARM interest rate has risen too much for them to afford, or they are having a tough time affording their higher rates due to reduced work hours.
Banks are further damaging the real estate market. My niece recently tried to refinance their mortgage for a better interest rate, but when she heard that she would be charged $8K due to bogus fees (and this is without any buydown of the rate), she decided to take her chances on the real estate market, which had reportedly recently bottomed out in their area. I even have to wonder about the possiblility that the banks are in collusion with some appraisers to manipulate market prices, but I can’t figure out what their angle would be. All I know is that a house that was recently being purchased on a screaming deal ($125K for a house in good shape, over 2,000 SF) just got a lot better because the appraisal came in at $94K. The owner feels forced to take the loss because his other options are worse.
Yet, here are some stats dated today from the AP:
The foreclosure rate on prime fixed-rate loans doubled in the past year, and now represents the largest share of new foreclosures. Nearly 6 percent of fixed-rate mortgages to borrowers with good credit were past due or in foreclosure. At the same time, almost half of all adjustable-rate loans made to borrowers with shaky credit were past due or in foreclosure.
At this point, I’m more inclined to think that some of the worst of the banks should be broken up, their assets taken over, their prized officers sent packing, and once they are pared down to a more reasonable size, sold to new owners that have cleaner bills of health, similar to what happened with the RTC. I just wish there was some sort of test the new owners need to pass that would reveal their level of scruples, because the current group is proving daily that they have none.
Signed and recommended. Thanks Dean.
IMHO, the low hanging fruit is the $600 billion we send abroad each year for crude oil. Each dollar of that drains value from our homes, our retirement accounts, and our institutions.