Overly Stimulating
"ADMINISTRATION ESTIMATES OF JOBS created or saved by stimulus spending are embarrassingly inaccurate..."
http://online.barrons.com/article/SB125815707307947809.html?mod=BOL_hps_dc#articleTabs%3Darticle
Could it be that we're looking and counting the wrong trees in the woods and not considering the actual forest?
In other words, should we even be looking at the jobs created by government spending; or, should we be looking at jobs lost or not created by misbeguided government policies?
I'd suggest we look at whether we are creating a better, stronger, more entrepreneurially rewarding business climate or not. And, my own answer, which I'd posit is reflected in the unemployment rate, is that we are not.
While looking at what government allowed to happen to GM (bankruptcy and equity investor wipe-out to preserve some union jobs and retirement benefits) as the government's plan for the economy, it is perhaps worth considering the impact it has on investors and business people.
Showing posts with label fannie freddie supply demand distortion economic decline jobs. Show all posts
Showing posts with label fannie freddie supply demand distortion economic decline jobs. Show all posts
Sunday, November 15, 2009
Wednesday, November 11, 2009
Back to Basics - Supply and Demand
The Fannie Mae Dice Roll Continues
http://online.wsj.com/article/SB10001424052748704402404574527440083580698.html?mod=djemITP
Part of what should scare the lenders to the US is that the forces of supply and demand, saving and borrowing are being so enormously distorted.
The unemployment rate may be one of the flags evidencing what is going on, while the low interest rates at which the Treasury can borrow seem more like the delusion of constantly rising housing prices.
A question could be at what point of decline and at what level of misery, the US will decide to take a different tack than the one its on? Certainly there are states that are further down the road of economic dislocation and economic misery.
Yesterday's paper stated that New York State income tax receipts were down by 1/3rd. At the same time, the legislature didn't want to cut social consumption spending. So, like the families also highlighted yesterday that run through their severance and savings, the US is using up its capital stock and borrowing capacity - not to fund job creation or economic growth, but to support current consumption.
When and how will the debts be paid?
http://online.wsj.com/article/SB10001424052748704402404574527440083580698.html?mod=djemITP
Part of what should scare the lenders to the US is that the forces of supply and demand, saving and borrowing are being so enormously distorted.
The unemployment rate may be one of the flags evidencing what is going on, while the low interest rates at which the Treasury can borrow seem more like the delusion of constantly rising housing prices.
A question could be at what point of decline and at what level of misery, the US will decide to take a different tack than the one its on? Certainly there are states that are further down the road of economic dislocation and economic misery.
Yesterday's paper stated that New York State income tax receipts were down by 1/3rd. At the same time, the legislature didn't want to cut social consumption spending. So, like the families also highlighted yesterday that run through their severance and savings, the US is using up its capital stock and borrowing capacity - not to fund job creation or economic growth, but to support current consumption.
When and how will the debts be paid?
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