Posted on 02/23/2009 6:17:59 AM PST by ToddThurman
The Heritage Foundation does not believe in Keynesian economics. We do not believe that massive government spending has a “multiplier effect” which turns the initial amount of money spent by the government into an even greater increase in national income. Economic studies of projects claiming to have a “multiplier effect” have shown that the claimed additional economic benefit from government spending simply never materializes. But the White House does believe in Keynesian economics. And President Barack Obama’s entire economic plan is grounded in the belief that massive new government spending is the key to economic recovery.
(Excerpt) Read more at blog.heritage.org ...
The Dow is already down over 100 points at the opening bell.
You’re still looking at Friday’s close. The Dow was up slightly at the opening.
D’oh! My bad. You are correct.
Raising taxes has about as much chance of ending a recession as promiscuous sex does of ending venereal disease.
The market is up today - largely on the news that the Federal Government is going to buy a “stake” in Citigroup, as if that will help solve the underlying problem of toxic assets, which it will not. All it will do is lead us further down the road toward bank nationalization, which is what I am convinced Obama secretly wants.
No. They believe in consolidating power and controlling people.
I read today that Obama doesn't want to piss off the UAW by letting GM fail but also is wary of more loans. The solution? Getting banks to loan money to GM, which will be used to partially repay the Gov't. Which bank? Why Citi of course!
“First as a senator and then as president, Obama has presided over the fastest, largest outlay of federal money since World War II.”
While I detest what he’s doing too, we owe ourselves a little more honest than that.
He presided” over the outlays as senator? We all know he had virtually nothing to do with the dam breaker (the first 700 bil) other than to vote for it - as did McCain.
Gee... Whose idea was that again?
If you act right now, you can get a share of Citicorp with every McDonald’s Value Meal. Or a Batman action figure; whichever is worth more.
This suckers’ rally didn’t even last an hour. The Dow is back in the red.
You get multipliers when you do something that creates a profit.
Who wants to tell me how many pieces of the stimulus packages will create actual profit?
Anyone??
So if your stock is gaining in value you may disappoint the Kenyan Chief.
The biggest challenge would be to effectively “unbundle” the offending mortgage-backed securities and then sell off the more deserving assets to willing buyers, while writing off truly bad debt. They will also need to repackage underlying properties in a way that not only produces origination fees and future cash flows but also helps to create a healthy and transparent secondary market which unfortunately no longer exists. Effective valuations will continue to be extremely difficult without such a market to provide both price stability and liquidity. The curse of Fannie Mae and Freddie Mac lives on: thanks to the government, no one knew what anything was really worth, or even what they were buying.
This suckers’ rally didn’t even last an hour. The Dow is back in the red.
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I have a neighbor who was a machinest working for a small
company making parts for the oil service industry. He was
laid off last Friday. I’m going to watch and see how long
he keeps his 0bama bumper sticker.
“Think of the reluctance (ha! refusal is more like it) of those with liquid capital to invest in equities as capital going on strike.
Voting with their checkbooks that they will not take equity risks in the current environment where the government is an ever larger participant in the markets, determining who wins or loses based on political considerations, and promising to substantially raise taxes on those who are successful.
The ordinary equity premium to take market risk has to have greatly increased to include not only inflation risk, the risk of unknowable government actions to raise costs to companies, but also to take into account the higher taxes investors will pay on any dividends or gains.
Where is there an incentive to invest in anything other than tax free instruments and the traditional stores of value (gold, high end gemstones, etc.)? Talk about crowding out, it’s already happening, and with a vengeance.”
Comment from CP Minetti in the Wall Street Journal 2/23/09
MOLON LABE
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