Should Obama ask for additional fiscal stimulus now?

[Hacp]

The best way to "stimulate" the economy would be to get rid of the EPA, lower taxes, and get rid of social security and medicare. Making all the states right to work will also help.

 

[sMiLeYz]

The best way to "stimulate" the economy would be to get rid of the EPA, lower taxes, and get rid of social security and medicare.

That's like saying the best way to get Al Qaeda is to invade Iraq.

 

[BoberFett]

I am planning to purchase one soon, and have the means to do so, but if the Republicans are going to sit around and fiddle their thumbs while we fall back into recession, I'll wait a little longer until the full "benefits" of their economic policies kick in.
The solution to the problem faced by people whose houses are under water is to have more fiscal stimulus to create jobs to drive demand and higher prices for housing. It's not to have the government lay off people who are then forced to sell, flooding an already flooded market with more supply.

So... re-inflate the housing bubble? Good god, you get dumber by the post.

 

[Doc Savage Fan]

How is the debt the biggest threat to our future?

Higher interest rates are coming and they will kill us. Experts say we're toast when interest payouts hit 12% of GDP. What say you?

 

[Throckmorton]

+10% ????

Profit!

10% is the amount that people tithed to their churches after being paid for working on infrastructure or getting tax cuts.

 

[Throckmorton]

Higher interest rates are coming and they will kill us. Experts say we're toast when interest payouts hit 12% of GDP. What say you?

How is a longer recession/depression going to help the national debt and interest?

 

[BoberFett]

How is a longer recession/depression going to help the national debt and interest?

This is not a recession, this is a correction. We have been spending more than we created for decades. Fight the correction, you make the eventual collapse worse. We need to bring consumption and production back in line. Stimulus is just another word for overconsumption.

 

[Doc Savage Fan]

How is a longer recession/depression going to help the national debt and interest?

Haven't you heard...the last stimulus package worked...everybody knows this. /s

 

[Jaskalas]

This is not a recession, this is a correction. We have been spending more than we created for decades. Fight the correction, you make the eventual collapse worse. We need to bring consumption and production back in line. Stimulus is just another word for overconsumption.

Brilliant explanation.

 

[Throckmorton]

Haven't you heard...the last stimulus package worked...everybody knows this. /s

Yes, it worked as much as it could. The problem was that it wasn't big enough.

Kind of like how the Afghanistan war worked only to the extent that we devoted resources to it before starting a second war...

 

[BoberFett]

I will add, borrowing is not in itself wrong. Borrowing during lean times is fine, but it requires the fortitude to then repay those loans during the next boom. Individuals and companies do it all the time. Unfortunately this country lacks that fortitude. We borrow during the good times, and borrow even more during the bad. We don't smooth out the economy and the federal budget, we keep gorging it with more and more and more.

 

[Throckmorton]

This is not a recession, this is a correction. We have been spending more than we created for decades. Fight the correction, you make the eventual collapse worse. We need to bring consumption and production back in line. Stimulus is just another word for overconsumption.

It seems to me that "we the people" have been spending more than we have been paid, because we've been underpaid for the wealth we've created for the last 40 years.

Wouldn't the correction for that the difficulty in getting credit plus wage increases to bring us back to our proportionate share of wealth generation? So when are the wage increases going to happen?

 

[Throckmorton]

I will add, borrowing is not in itself wrong. Borrowing during lean times is fine, but it requires the fortitude to then repay those loans during the next boom. Individuals and companies do it all the time. Unfortunately this country lacks that fortitude. We borrow during the good times, and borrow even more during the bad. We don't smooth out the economy and the federal budget, we keep gorging it with more and more and more.

Because when times are good, people elect Republicans, who then give tax cuts which they claim increase revenue...

 

[Doc Savage Fan]

Yes, it worked as much as it could. The problem was that it wasn't big enough.

Yes...we need more "stimulus"...the bigger the better so we make sure that it will really, really work this time to stave off otherwise inevitable "recession/depression".

Meanwhile...the world is running to commodities....hmmmm...that's curious.

 

[manimal]

I will add, borrowing is not in itself wrong. Borrowing during lean times is fine, but it requires the fortitude to then repay those loans during the next boom. Individuals and companies do it all the time. Unfortunately this country lacks that fortitude. We borrow during the good times, and borrow even more during the bad. We don't smooth out the economy and the federal budget, we keep gorging it with more and more and more.

dude awesome picture!

 

[FuzzyBee]

10% is the amount that people tithed to their churches after being paid for working on infrastructure or getting tax cuts.

You *do* realize that 55% + 35% = 90%, right? Where's the other 10%? I'll give you the credit of presuming that your 10% tithing is just a lame excuse at a joke.

 

[Darwin333]

How is the debt the biggest threat to our future? The downgrade is due to threat of politcal gridlock rather than deficit spending.



The worst thing that could happen is the debt ceiling not being raised, economically.

Treasury bond interest rates are at historic lows, that means its cheaper than dirt to deficit spend

Except that all of our debt has to be rolled over every 4 years because we moved it to the short end to save a few bucks now. That means when rates go up we will immiediately see our debt service payments shoot the moon.

How did those ARMs work out for people who purchased houses a few years before the market crashed? Our debt is basically structured the same way.

 

[BoberFett]

dude awesome picture!

I'm not sure whether that's a representation of America or Americans...

:hmm:

 

[theeedude]

So... re-inflate the housing bubble? Good god, you get dumber by the post.

Yeah, reinflate the housing. Not to a point of a bubble, but to the point that people are not under water. I don't think there are better alternatives. Mind you it's in my best interest that we don't do that and let prices keep deflating, since I am looking to buy a house. But for the country to get over the housing bubble bust, we will need to do that.

 

[theeedude]

So your going to wait to buy when housing prices are at low levels because the meanie republicans are fiddling their thumbs? Even buying a home is a partisan decision for you?

It's an investment decision. If Republicans are fiddling their thumbs on stimulus, that to me indicates further housing deflation in the future, which means I am going to fiddle my thumbs too until housing prices drop some more. Who should I deploy my money now if in all likelihood there is going to be additional price declines?

 

[theeedude]

So monetizing the debt is not printing money now?

Only if it's Fed doing it. If Chinese are buying it, then it's not.

 

[Matt1970]

He got political capital from OBL killing. Economy needs new fiscal stimulus to avoid sliding back into recession. Austerity is turning into an self inflicted economic debacle in the UK.
Put the economic necessity and political opportunity together, and now is the time to get this done. If GOP wants to block it and take the blame, let them do it, but Obama needs to do what's right for America and get another stimulus passed.

Wow, you really are getting more stupid by the post.

 

[Throckmorton]

You *do* realize that 55% + 35% = 90%, right? Where's the other 10%? I'll give you the credit of presuming that your 10% tithing is just a lame excuse at a joke.

It's called a typo

65%+35%. Happy now?

 

[a777pilot]

He got political capital from OBL killing. Economy needs new fiscal stimulus to avoid sliding back into recession. Austerity is turning into an self inflicted economic debacle in the UK.
Put the economic necessity and political opportunity together, and now is the time to get this done. If GOP wants to block it and take the blame, let them do it, but Obama needs to do what's right for America and get another stimulus passed.

YES! Why not? I can't think of anything that would hasten the destruction of this nation more than spending a whole lot more money that we don't have.

Just fucking Beautiful!

 

[Matt1970]

It's an investment decision. If Republicans are fiddling their thumbs on stimulus, that to me indicates further housing deflation in the future, which means I am going to fiddle my thumbs too until housing prices drop some more. Who should I deploy my money now if in all likelihood there is going to be additional price declines?

Stimulus is not the answer. Obama threw $4 Trillion at the problem and made it worse. That's $13,000 per person in the US. I didn't see any of it. Did you get $13,000 extra in the last 2+ years?

We spent $4 Trillion in the name of 10 million unemployed in a bad economy. That's $400,000 for each unemployed worker. Do you think it worked?