Archive for Tuesday, February 10, 2009

Senate passes Obama’s economic recovery plan

February 10, 2009

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— President Barack Obama's economic recovery plan has passed the U.S. Senate and is on its way to difficult House-Senate negotiations.

Just three Republicans helped pass the plan on a 61-37 vote and they are already signaling they are firmly resolved to preserve more than $108 billion in spending cuts made last week in Senate dealmaking. Obama wants to restore cuts in funds for school construction jobs and help for cash-starved states.

Those cuts are among the major differences between the $819 billion House version of Obama's plan and a Senate bill costing $838 billion. Obama has warned of a deepening economic crisis if Congress fails to act. He wants a bill completed by the weekend.

Comments

Charles L Bloss Jr 6 years, 4 months ago

I am quite concerned about the spending level of this, not to mention all the "pork" that has absolutely nothing at all to do with improving the economy. Our kids and grandkids will be paying for this costly error in judgment. Thank you, Lynn

jmadison 6 years, 4 months ago

From the Bloomberg article:The bill’s health rules will affect “every individual in the United States” (445, 454, 479). Your medical treatments will be tracked electronically by a federal system. Having electronic medical records at your fingertips, easily transferred to a hospital, is beneficial. It will help avoid duplicate tests and errors.Any civil libertarians out there worried about Big Brother mandating that all your medical info would be on a government computer. Warrantless wiretaps pale in comparison to this power grab by the government. Does Dennis Moore plan to vote for this infringement on civil liberties?

Godot 6 years, 4 months ago

Windlass' post reminds me of the propaganda campaign of the FDR administration, getting all those movie studios to put their stars out on the "buy bonds" tour.Be prepared for endless fraudulent initiatives by the Obama administration to scare people into buying bonds that pay zero per cent.

Godot 6 years, 4 months ago

China won't buy new long term US bonds, and now is asking for a guarantee on the ones it already owns.Obama needs to admit that the big banks, and the pension funds, and the US government, are insolvent. This "liquidity" problem that Obama claims to be attempting to solve is a lie. It is an "insolvency" problem.

jaywalker 6 years, 4 months ago

"What is that makes the right wing so determined to vote against their own best interests?" So much about that post is ironically humourous for reasons too njumerous to mention. But the above line screams.........beobachter, as stupid as he seems.

Godot 6 years, 4 months ago

Windlass, I finally agree with you on something. I do believe that mass amounts of money are in Democrat campaign backer's off shore accounts.

Godot 6 years, 4 months ago

From the Financial Times, Martin Wolf, excerpt:"All along two contrasting views have been held on what ails the financial system. The first is that this is essentially a panic. The second is that this is a problem of insolvency. Under the first view, the prices of a defined set of “toxic assets” have been driven below their long-run value and in some cases have become impossible to sell. The solution, many suggest, is for governments to make a market, buy assets or insure banks against losses. This was the rationale for the original Tarp and the “super-SIV (special investment vehicle)” proposed by Henry (Hank) Paulson, the previous Treasury secretary, in 2007.Under the second view, a sizeable proportion of financial institutions are insolvent: their assets are, under plausible assumptions, worth less than their liabilities. The International Monetary Fund argues that potential losses on US-originated credit assets alone are now $2,200bn (€1,700bn, £1,500bn), up from $1,400bn just last October. This is almost identical to the latest estimates from Goldman Sachs. In recent comments to the Financial Times, Nouriel Roubini of RGE Monitor and the Stern School of New York University estimates peak losses on US-generated assets at $3,600bn. Fortunately for the US, half of these losses will fall abroad. But, the rest of the world will strike back: as the world economy implodes, huge losses abroad – on sovereign, housing and corporate debt – will surely fall on US institutions, with dire effects.Personally, I have little doubt that the second view is correct and, as the world economy deteriorates, will become ever more so. But this is not the heart of the matter. That is whether, in the presence of such uncertainty, it can be right to base policy on hoping for the best. The answer is clear: rational policymakers must assume the worst. If this proved pessimistic, they would end up with an over-capitalised financial system. If the optimistic choice turned out to be wrong, they would have zombie banks and a discredited government. This choice is surely a “no brainer”.The new plan seems to make sense if and only if the principal problem is illiquidity."Which it is not. To admit that insolvency is the problem would kill one's future political prospects.

Godot 6 years, 4 months ago

I bonds are based on the rate of inflation. Considerting that we are in a deflationary spiral, how is it that I bonds pay almost as much as junk bonds?

labmonkey 6 years, 4 months ago

The three Republicans who voted for this should be thrown out of the party.

Godot 6 years, 4 months ago

Beware of fraudulent statements made by Obama propagandists (Windlass) about the return on "I bonds"From Treasury Direct:February 2009 Reference CPI Numbers and Daily Index Ratios 3-5/8% 30-year TIPS due April 15, 2028 3-7/8% 30-year TIPS due April 15, 2029 4-1/4% 10-year TIPS due January 15, 2010 3-1/2% 10-year TIPS due January 15, 2011 3-3/8% 30-1/2-year TIPS due April 15, 2032 3-3/8% 10-year TIPS due January 15, 2012 3% 10-year TIPS due July 15, 2012 1-7/8% 10-year TIPS due July 15, 2013 2% 10-year TIPS due January 15, 2014 2% 10-year TIPS due July 15, 2014 2-3/8% 20-1/2-year TIPS due January 15, 2025 0-7/8% 5-1/2-year TIPS due April 15, 2010 1-5/8% 10-year TIPS due January 15, 2015 1-7/8% 10-year TIPS due July 15, 2015 2% 10-year TIPS due January 15, 2016 2% 20-year TIPS due January 15, 2026 2-3/8% 5-year TIPS due April 15, 2011 2-1/2% 10-year TIPS due July 15, 2016 2-3/8% 10-year TIPS due January 15, 2017 2-3/8% 20-year TIPS due January 15, 2027 2% 5-year TIPS due April 15, 2012 2-5/8% 10-year TIPS due July 15, 2017 1-5/8% 10-year TIPS due January 15, 2018 1-3/4% 20-year TIPS due January 15, 2028 0-5/8% 5-year TIPS due April 15, 2013 1-3/8% 10-year TIPS due July 15, 2018 2-1/8% 10-year TIPS due January 15, 2019 2-1/2% 20-year TIPS due January 15, 2029

staff04 6 years, 4 months ago

This has got to be one of the funniest right-wing rantings I've seen in a long time. Since I have seen several of you whack-jobs post links from this site, it's fair game, right?http://www.worldnetdaily.com/?pageId=88439

Godot 6 years, 4 months ago

"Tuesday, February 10, 2009What Consensus for the “Stimulus?” [Brian Riedl]The Obama administration has claimed that virtually all economists support their approach to "stimulus" spending. This is patently untrue. Nobel Laureates Ed Prescott, James Buchanan, and Vernon Smith recently joined 200 other economists signing a letter opposing the legislation. Other notable economists critical of the stimulus package include Nobel Laureate Gary Becker, as well as Robert Barro, Greg Mankiw, Arthur Laffer, and Larry Lindsey. Martin Feldstein, who had been the only notable conservative economist loudly supporting the stimulus, has since changed his mind.More liberal economists such as Alice Rivlin and Alan Blinder have also strongly criticized certain aspects of the spending bill. Even President Obama's own economic advisers—who are leading the fight for the "stimulus" bill—previously criticized the bill's economic underpinnings.Council of Economic Advisors Chairwoman Christina Romer (March 2007): "[C]ountercyclical fiscal policy is not achieving its intended purpose." Why? "[I]t is difficult for fiscal policy to respond quickly to economic developments."Presidential economic adviser Jason Furman (January 2008): "[I]n the past, infrastructure projects that were initiated as the economy started to weaken did not involve substantial amounts of spending until after the economy had recovered."National Economic Council Director Larry Summers (January 2008): "[P]oorly provided fiscal stimulus can have worse side effects than the disease that is to be cured.... [F]iscal stimulus, to be maximally effective, must be clearly and credibly temporary—with no significant adverse impact on the deficit for more than a year or so after implementation. Otherwise it risks being counterproductive by raising the spectre of enlarged future deficits pushing up longer-term interest rates and undermining confidence and longer-term growth prospects."President’s budget director, Peter Orszag (January 2008 CBO report he oversaw): "Large-scale construction projects of any type require years of planning and preparation. Even those that are 'on the shelf' generally cannot be undertaken quickly enough to provide timely stimulus to the economy."That same CBO has joined the chorus of critics by recently releasing a report projecting that the "stimulus" will worsen the long-run performance of the economy.Lawmakers should not let themselves be bullied into voting for legislation based on a “bipartisan consensus” that does not actually exist.02/10 12:03 PMhttp://corner.nationalreview.com/post/?q=MjdjMzU5OWQ0NzQ3YTMxYWQwMGYzY2Y2MmI4YzM2ZTI=

staff04 6 years, 4 months ago

Tom, you spent the whole day here posting and leeching off of your wife while I was at work contributing to the economy. Who's the loser?Sad thing is Tom, you probably don't get the point of either my first post on this story, or my last...

jaywalker 6 years, 4 months ago

So what is 'the point', staff? That even Newsweek, a left-leaning weekly, sees the recent events as a move to a socialist society?

Flap Doodle 6 years, 4 months ago

Don't be too negative about the O'dude's massive payoffs to unions & special interest groups. You don't want the state of Ohio investigating your records, do you?

Godot 6 years, 4 months ago

Very astute commentary on the actions of the Obama administration from an analyst in (gasp) Chicago. Watch the video.http://watch.bnn.ca/#clip138638

Godot 6 years, 4 months ago

Astute, non governmental commentary notwithstanding above, here is a clip from Charles Schumer, D-NY, regarding the stimulus bill in which he says that the American people really don't care if this bill is made up of pork:http://www.youtube.com/watch?v=JEfICU...

Godot 6 years, 4 months ago

Now you see, we "the chattering classes," who cry out in defiance at the looting of the US treasury (ie the future earnings of US taxpayers) that began under the Bush administration and is being ramped up on steriods by the Obama administration, are labeled contemptiously by the Democrat senate slimebags, while the remainder of the non-protesting ciitzenry are assumed to not care, or to bee too dumb to realize, that they are being robbed blind by our elected Congress and President.Are there 536 empty cells in Guantanamo? I think there will be by the time Obama sets all the foreign terrorists free. I say fill up Guantanamo Bay with 535 Congressional Terrorists, plus one Econo Terrorist in Chief.

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