Thursday, January 24, 2008

Are We Stimulated Yet?

There seems to be some disappointment over the stimulus package and questions about how effective it will be.

I totally buy the argument that a stimulus package aimed at creating a consumer driven economic recovery is best directed at the people who will actually spend it (aka poor folks). But this time around I am convinced (in my spectating, novice way) that the architects of the stimulus are not trying to create an increase in consumer activity, per se. I think their intention is to pump money back into our financial institutions by enabling debt repayment.

Kind of a back door bailout, if you will. Better than a front door bailout I suppose and in theory it seems like a win-win to me. If it's not too little, too late.

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