The stimulus package never was anything more than political payoff, bailing out states and organizations that had no ability or intention to make the difficult choices needed to stay solvent. One wonders why the Obama administration is doing this – maybe to reduce the deficit on paper, or try to cheerlead the economy the way they savaged it for so long. Who knows.

Pixie dust and Unicorn farts–that’s what’s gonna drive this train.

“if the financial system begins to function more normally”

Yes, yes. That’s what’s dragging the economy down. You’ve been telling us that since September. You know: Several TRILLION dollars ago! (Which you said would have solved this a long time ago.)

So, basically it’s: “If everything goes back to the way it was, we’ll have the growth we used to have.” Dang that’s smart! Holy crap, how many Ivy League diploma’s does one need to say such super genius stuff?

“The administration expects “housing starts to reach bottom this year and to begin a robust recovery as relative housing prices stabilize,” today’s report said.”

Yes, because 1/3 of all mortgages being upside down; record bankruptcies, record credit card defaults will all go away once “relative housing prices stabilize.” What you’re saying is: “So what if you owe $50,000 more than your house is worth–once it stops losing value, say when you owe $70k more, you’re gonna be rich man, RICH! And then you’re going to go out and buy 2 or 3 more houses. It’s science, look it up.”

“The Federal Reserve’s “novel” policies of extending funds to banks to boost liquidity and purchasing short- and long-term Treasuries also will help underpin the recovery, the White House said.”

Yup, “novel” is the word. Others might say stuff like: Melting down the printing presses printing so much money, so fast. Still other might say: I’ve seen this scheme before except we called it “check kiting” and it was a crime. Another term might be “robbing Peter to pay Paul.”

When I was younger, doing a bit of mechanic work, you could get an engine to fire and run for a bit spraying ether or dumping a bit of gas in the carburetor–dangerous as hell. But, the engine would fire and run for a bit. With no gas in the tank or getting to the carburetor, it’d soon die. And often, it’d backfire and shoot flames from the carburetor. Not a good spot to be if you’re the one “priming the pump.”

That’s where we’re at now: 0bama’s telling us if we’d just dump a bit more gas in the carburetor this ol’ engine is gonna fire up and run like a champ. He’s behind the wheel cranking the starter and telling us to climb on up there and dump another cup of gas in the intake.

I think they meant 0.35%…..

or maybe they meant 35% growth in Government under Obama over the next 2 years.

By year-end, the US economy will economy will expand at a rate of…

Three Point Five Percent!!!

We’ve had a severe recession accompanied by a huge declines in economic activity. There is likely to be a pretty significant growth rate in just recovering from the downturn. A proverbial dead cat bounce.

The real issue is not whether the economy expands at a 3.5% rate, but how durable that 3.5% is. And this is where Obama’s trouble lies. First, without strong incentives for economic growth, 3.5% expansions don’t last long. And Obama’s huge tax increases after 2010 will kill the incentives necessary for investing and entrepreneurship.

And without smart incentives and robust economic growth, 10% unemployment rates don’t melt away. 10% or even 7% unemployment rates are a huge drag on consumer spending and on the economy. And if, after that dead cat bounce, economic growth settles in at a fragile 1 or 2 per cent, jobless rates will remain high and painful.

The better argument for conservatives is about the lack of incentives and the “employment recession” that Obama’s policies will cause, not whether the economy grows at fast pace for awhile.

Massive government spending does not stimulate the economy. On the contrary, it is a sedative to the economy. If the economy were left unmolested for a year, it would recover and bring prosperity. Instead, Obama and the Democrats have decided to intervene in a very negative way.

It’s a mistake to call the economy we are experiencing a depression or a recession. This is an Opression.

But it’s a lot more likely to come in at -3.5%.

Of course, that will be all George Bush’s fault.

Proper grammar saves lives.

Let’s eat Grandma.
Let’s eat, Grandma.

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Activists Taking Action: Unified Patriots

Which year?

and that if we are lucky. Thank goodness for the stimulus, if we hadn’t passed 785 billion in spending then we would have had something like 0.1% growth.

which predict half the growth Obama foresees are using some optimistic assumptions.

At the rate Obama is destroying capital formation, we could be in for a long, dark night indeed.