BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Supply sider now believes fiscal stimulus leads to GDP growth]]>http://www.bloggingstocks.com/2009/08/04/supply-sider-now-believes-fiscal-stimulus-leads-to-gdp-growth/http://www.bloggingstocks.com/2009/08/04/supply-sider-now-believes-fiscal-stimulus-leads-to-gdp-growth/http://www.bloggingstocks.com/2009/08/04/supply-sider-now-believes-fiscal-stimulus-leads-to-gdp-growth/#commentsFiled under:

A victory of sorts, for Keynesian economics, and ultimately, for the American people.

Earlier this year author Amity Shlaes, who is a conservative and not a Keynesian, was a member of the chorus of market absolutists and conservative economists who opposed the U.S. government's fiscal stimulus package, on philosophical grounds: government spending doesn't stimulate the economy. (Shlaes should talk to automakers based in the U.S. about that one, particularly amid the 'cash for clunkers' fiscal stimulus plan.)


Continue reading Supply sider now believes fiscal stimulus leads to GDP growth

Supply sider now believes fiscal stimulus leads to GDP growth originally appeared on BloggingStocks on Tue, 04 Aug 2009 16:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Amity Shlaesfiscal stimulus packageNew DealTue, 04 Aug 2009 16:20:00 EST<![CDATA[If the U.S. economy strengthens, Fiscal Stimulus II may be shelved]]>http://www.bloggingstocks.com/2009/03/11/if-the-u-s-economy-strengthens-fiscal-stimulus-ii-may-be-shelv/http://www.bloggingstocks.com/2009/03/11/if-the-u-s-economy-strengthens-fiscal-stimulus-ii-may-be-shelv/http://www.bloggingstocks.com/2009/03/11/if-the-u-s-economy-strengthens-fiscal-stimulus-ii-may-be-shelv/#commentsFiled under: ,

In his column last week, New York Times (NYSE: NYT) columnist and Nobel Prize-winning economist Paul Krugman laid waste to those who argue that he's not critically assessing Obama administration programs. He offered a cogent critique of the U.S. Treasury's tardiness regarding the banking system fix.

Either temporarily nationalize those banks that are clogging the system, buy the toxic assets at unsubsidized prices, or announce some other market-valued removal plan to unclog the system, but let's put this train in motion, Krugman said, in so many words, to get to the root of the matter: We need to get credit flowing freely to facilitate commerce.

Continue reading If the U.S. economy strengthens, Fiscal Stimulus II may be shelved

If the U.S. economy strengthens, Fiscal Stimulus II may be shelved originally appeared on BloggingStocks on Wed, 11 Mar 2009 12:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>banking sectorCongressDemocratsfeaturedfiscal policyfiscal stimulus packageNew York Times op-edNewYorkTimesOp-edObama administrationPaul KrugmanRepublicanstoxic assetsU.S. economyWed, 11 Mar 2009 12:15:00 EST<![CDATA[Will the U.S. economy need a second fiscal stimulus package? ]]>http://www.bloggingstocks.com/2009/02/26/will-the-u-s-economy-need-a-second-fiscal-stimulus-package/http://www.bloggingstocks.com/2009/02/26/will-the-u-s-economy-need-a-second-fiscal-stimulus-package/http://www.bloggingstocks.com/2009/02/26/will-the-u-s-economy-need-a-second-fiscal-stimulus-package/#commentsFiled under: , ,

In the landmark, blockbuster film "Jaws" (1975), reluctant sailor, Police Chief Martin Brody (Roy Scheider), while chumming bait, gets his first look at the great white shark that's been terrorizing Amity's shoreline community. Captain Quint (Robert Shaw) and Marine Biologist Matt Hooper (Richard Dreyfuss) are immediately struck by the shark's size.

But Chief Brody is struck by another reality. "You're gonna need a bigger boat," Brody said.

In today's environment, with the U.S. economy in a pronounced recession and credit markets still constrained, the Keyensians - - which include most Congressional Democrats - - are playing the role of Chief Brody. They know what's needed to go after that shark (the recession).

'You're gonna need a bigger stimulus.' (In this case the 'bigger stimulus' means a second stimulus package.)

Continue reading Will the U.S. economy need a second fiscal stimulus package?

Will the U.S. economy need a second fiscal stimulus package? originally appeared on BloggingStocks on Thu, 26 Feb 2009 14:55:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bank bailoutCongressDemocratsfeaturedfiscal stimulus packagegdpObamaObama administrationRepublicansU.S. economyThu, 26 Feb 2009 14:55:00 EST<![CDATA[Fluor (FLR) knows there's plenty of work to be done in the U.S.]]>http://www.bloggingstocks.com/2009/02/17/fluor-flr-knows-theres-plenty-of-work-to-be-done-in-the-unite/http://www.bloggingstocks.com/2009/02/17/fluor-flr-knows-theres-plenty-of-work-to-be-done-in-the-unite/http://www.bloggingstocks.com/2009/02/17/fluor-flr-knows-theres-plenty-of-work-to-be-done-in-the-unite/#commentsFiled under: ,

Investing, like the politics that leads to U.S. public policy, is the art of the possible.

Conditions shift, windows of opportunity present themselves, even amid choppy seas. One such opportunity is presenting itself with Fluor (NYSE: FLR).

Fluor is a leading international design, engineering, and contracting firm with projects that include designing and building manufacturing facilities, refineries, pharmaceutical facilities, health care buildings, power plants and telecommunications and transportation infrastructure.

Continue reading Fluor (FLR) knows there's plenty of work to be done in the U.S.

Fluor (FLR) knows there's plenty of work to be done in the U.S. originally appeared on BloggingStocks on Tue, 17 Feb 2009 08:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>constructiondesignengineeringfiscal stimulus packageFLRFluorinfrastructuremaintenanceTue, 17 Feb 2009 08:15:00 EST<![CDATA[Fiscal stimulus package is big, but may not be big enough]]>http://www.bloggingstocks.com/2009/02/09/fiscal-stimulus-package-is-big-but-may-not-be-big-enough/http://www.bloggingstocks.com/2009/02/09/fiscal-stimulus-package-is-big-but-may-not-be-big-enough/http://www.bloggingstocks.com/2009/02/09/fiscal-stimulus-package-is-big-but-may-not-be-big-enough/#commentsFiled under: , ,

As the U.S. Senate prepares to vote on an $820-$900 billion fiscal stimulus bill and send it to a House / Senate conference committee, a stark reality confronted lawmakers: the stimulus package may not be large enough.

A group led by Senate Moderate Republicans and selected Democrats cut roughly $60-80 billion from the bill, in what they believe to be wasteful spending and / or items not directly related to stimulating the economy.

Economist Richard Felson said lawmakers may find themselves staring at an economy in six months that needs another stimulus jolt, and given the two options, it's better to provide the stimulus all at once, from a GDP-impact standpoint.

Continue reading Fiscal stimulus package is big, but may not be big enough

Fiscal stimulus package is big, but may not be big enough originally appeared on BloggingStocks on Mon, 09 Feb 2009 11:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>CongressDemocratsfeaturedfiscal stimulus packagegdpObama administrationRepublicansU.S. economyunemployment rateMon, 09 Feb 2009 11:30:00 EST<![CDATA[Traders preparing for another 'hang on to your hat' Friday ]]>http://www.bloggingstocks.com/2009/02/05/traders-preparing-for-another-hang-on-to-your-hat-friday/http://www.bloggingstocks.com/2009/02/05/traders-preparing-for-another-hang-on-to-your-hat-friday/http://www.bloggingstocks.com/2009/02/05/traders-preparing-for-another-hang-on-to-your-hat-friday/#commentsFiled under: , , , ,

It looks like tomorrow could very well become yet another "hang on to your hat Friday" or another edition of "As The U.S. Economy Turns."

Still, hopefully it won't become another 'down goes the Dow' day with an extended visit from our old friend, you guessed it, Dow 8,000. But analysts and economists haven't ruled the latter out.

The reason? The January 2009 jobs report, to be released by the U.S. Labor Department at 8:30 a.m. EST.

Following nearly a week in which a Fortune 500 company announced a major downsizing daily, and on the heels of December 2008's loss of 524,000 jobs, most professionals in economics and public policy circles are preparing for another sobering jobs report.

Continue reading Traders preparing for another 'hang on to your hat' Friday

Traders preparing for another 'hang on to your hat' Friday originally appeared on BloggingStocks on Thu, 05 Feb 2009 18:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>bailout billbanking sectorbearsbullsfiscal stimulus packageinthenewsjobsrescue billU.S. Labor Departmentunemploymentunemployment rateThu, 05 Feb 2009 18:30:00 EST<![CDATA[Ray of Light: U.S. Senate adds $15,000 homebuyer tax credit to stimulus bill ]]>http://www.bloggingstocks.com/2009/02/05/ray-of-light-u-s-senate-adds-15-000-homebuyer-tax-credit-to-s/http://www.bloggingstocks.com/2009/02/05/ray-of-light-u-s-senate-adds-15-000-homebuyer-tax-credit-to-s/http://www.bloggingstocks.com/2009/02/05/ray-of-light-u-s-senate-adds-15-000-homebuyer-tax-credit-to-s/#commentsFiled under: ,

Now we're talking fiscal stimulus. In a move to provide stimulus and economic incentives to a sector that, arguably, needs them the most, the U.S. Senate has added to the fiscal stimulus package a tax credit for up to $15,000 for homebuyers, The New York Times reported.

Economists and public policy analysts caution that the Senate has yet to vote on the stimulus bill, and the legislation, if approved, would then have to be reconciled, via a conference committee, with the stimulus package passed by the House. Nevertheless, economist Peter Dawson still likes the direction of the February wind in Washington.

Continue reading Ray of Light: U.S. Senate adds $15,000 homebuyer tax credit to stimulus bill

Ray of Light: U.S. Senate adds $15,000 homebuyer tax credit to stimulus bill originally appeared on BloggingStocks on Thu, 05 Feb 2009 16:50:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Democratsfiscal stimulus packagegdphomebuyer tax credithousing sectormedian home pricesObama AdministrationRepublicansU.S. economyU.S. SenateThu, 05 Feb 2009 16:50:00 EST<![CDATA[President Obama pushes hard for $900 billion stimulus]]>http://www.bloggingstocks.com/2009/02/05/president-obama-pushes-hard-for-900-billion-stimulus/http://www.bloggingstocks.com/2009/02/05/president-obama-pushes-hard-for-900-billion-stimulus/http://www.bloggingstocks.com/2009/02/05/president-obama-pushes-hard-for-900-billion-stimulus/#commentsFiled under: , ,

President Obama is starting to flex his leadership muscles and spend his hard-won political capital.

In remarks before House Democrats in Virginia Thursday night that sounded more like one of his successful campaign speeches that energized millions, Obama argued that the nation's economic well being requires swift approval of the roughly $900 billion fiscal stimulus package.

Continue reading President Obama pushes hard for $900 billion stimulus

President Obama pushes hard for $900 billion stimulus originally appeared on BloggingStocks on Thu, 05 Feb 2009 12:03:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Democratsfeaturedfiscal stimulus packagegdpObama administrationPresident ObamaRepublicansU.S. economyThu, 05 Feb 2009 12:03:00 EST<![CDATA[Economists: Modify fiscal stimulus package, but pass it, pronto]]>http://www.bloggingstocks.com/2009/02/03/economists-modify-fiscal-stimulus-package-but-pass-it-pronto/http://www.bloggingstocks.com/2009/02/03/economists-modify-fiscal-stimulus-package-but-pass-it-pronto/http://www.bloggingstocks.com/2009/02/03/economists-modify-fiscal-stimulus-package-but-pass-it-pronto/#commentsFiled under: ,

Senate debate resumed Tuesday on the fiscal stimulus package, and as it did several economists offered their policy advice for the august members of the world's greatest deliberative body.

The biggest change should concern size, so says economist David H. Wang. "It's too small. A $900 billion plan is good, but the stimulus plans that most effectively increase GDP are ones that are large, and the bigger the package, the bigger bang you'll get for your buck, from a GDP standpoint," Wang said. Wang said he would add at least $300 billion in spending to the plan.

Continue reading Economists: Modify fiscal stimulus package, but pass it, pronto

Economists: Modify fiscal stimulus package, but pass it, pronto originally appeared on BloggingStocks on Tue, 03 Feb 2009 19:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>CongressDemocratsfiscal policyfiscal stimulus packagegdpObama administrationRepublicansU.S. economyTue, 03 Feb 2009 19:30:00 EST<![CDATA[Stimulus plan's tax cut for foreign corporate earnings could inject $545 billion into U.S. economy]]>http://www.bloggingstocks.com/2009/01/29/stimulus-plans-tax-cut-for-foreign-corporate-earnings-could-inj/http://www.bloggingstocks.com/2009/01/29/stimulus-plans-tax-cut-for-foreign-corporate-earnings-could-inj/http://www.bloggingstocks.com/2009/01/29/stimulus-plans-tax-cut-for-foreign-corporate-earnings-could-inj/#commentsFiled under: , ,

Here's one tax cut/credit that Democrats and Republicans apparently agree on. Or, in Washingtonspeak, 'left has met right, so let's get this bill out the door.'

It appears the U.S. Senate is posed to add a provision to reduce taxes, at least temporarily, on corporate profits earned abroad. The Washington Post reported Thursday that further Senatorial changes could follow, and the Senate stimulus bill would have to be reconciled via a conference committee with a House version passed Wednesday, but the current Senate proposal would dramatically reduce taxes, from 35% to 5.25%, on foreign corporate profits repatriated to the United States.

Continue reading Stimulus plan's tax cut for foreign corporate earnings could inject $545 billion into U.S. economy

Stimulus plan's tax cut for foreign corporate earnings could inject $545 billion into U.S. economy originally appeared on BloggingStocks on Thu, 29 Jan 2009 17:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Allen SinaiCongressDecision EconomicsDemocratsearningsfiscal policyfiscal stimulus packageforeign earningsgdpObama AdministrationRepublicansU.S. economyThu, 29 Jan 2009 17:40:00 EST<![CDATA[Senate likely to revise stimulus package after House approval]]>http://www.bloggingstocks.com/2009/01/29/senate-likely-to-revise-stimulus-package-after-house-approval/http://www.bloggingstocks.com/2009/01/29/senate-likely-to-revise-stimulus-package-after-house-approval/http://www.bloggingstocks.com/2009/01/29/senate-likely-to-revise-stimulus-package-after-house-approval/#commentsFiled under: ,

Following's Wednesday's 244-188 House vote -- one in which, despite President Obama's efforts to cultivate Republican ideas, every House Republican voted against it -- the focus on the stimulus package shifts to the Senate, where plan revisions are likely.

Assuming Senate passage, any differences between the two versions would have to be resolved in a conference committee.

Republicans are complaining that the bill has too many traditional Democratic-constituency-based programs and 'pork,' while some Democrats are concerned the bill does not contain enough spending - - in particular infrastructure spending, to create jobs the U.S. economy needs. The U.S. economy lost more than 2.6 million jobs in 2008 -- including 1 million in the past two months -- and the nation's unemployment rate has soared to 7.2%.

Continue reading Senate likely to revise stimulus package after House approval

Senate likely to revise stimulus package after House approval originally appeared on BloggingStocks on Thu, 29 Jan 2009 10:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>CongressDemocratsfeaturedfiscal policyfiscal stimulus packageHouseObamaObama administrationRepublicansSenatetaxesThu, 29 Jan 2009 10:30:00 EST<![CDATA[U.S. budget deficit remains serviceable, provided U.S. economy grows ]]>http://www.bloggingstocks.com/2009/01/26/u-s-budget-deficit-remains-serviceable-provided-u-s-economy-g/http://www.bloggingstocks.com/2009/01/26/u-s-budget-deficit-remains-serviceable-provided-u-s-economy-g/http://www.bloggingstocks.com/2009/01/26/u-s-budget-deficit-remains-serviceable-provided-u-s-economy-g/#commentsFiled under: , , ,

One of the biggest misnomers in the current fiscal stimulus debate concerns the United States' ability to service its budget deficit and national debt (pdf).

Provided the fiscal stimulus package is passed, the national debt ceiling will increase to $12.1 trillion from the current $11.3 trillion.

Deficit approaching intolerable levels?

Economic conservatives, market absolutists, and the like argue that the annual budget deficit and national debt are approaching intolerable levels. In truth, what they're arguing against is a needed government intervention and New Deal-type spending required to jump-start the U.S. economy -- even if it means the economy will plunge into a deeper recession without the stimulus. It seems some economic conservatives would rather see the nation's economy suffer, than to violate one their flawed economic theories.

Continue reading U.S. budget deficit remains serviceable, provided U.S. economy grows

U.S. budget deficit remains serviceable, provided U.S. economy grows originally appeared on BloggingStocks on Mon, 26 Jan 2009 17:45:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>budget deficitfiscal policyfiscal stimulus packagegdpKeynesiansmonetaristsnational debtPaul KrugmanU.S. economyMon, 26 Jan 2009 17:45:00 EST<![CDATA[Obama Administration's Summers: Economy is worse than we thought]]>http://www.bloggingstocks.com/2009/01/26/obama-administrations-summers-economy-is-worse-than-we-thought/http://www.bloggingstocks.com/2009/01/26/obama-administrations-summers-economy-is-worse-than-we-thought/http://www.bloggingstocks.com/2009/01/26/obama-administrations-summers-economy-is-worse-than-we-thought/#commentsFiled under: , ,

Despite bracing for the worst, a comprehensive look at the official hard data has provided another dose of the sobering economic reality for the young Obama administration.

The economy "is worse, quite frankly, than everyone thought it was," Lawrence Summers, President Obama's chief economic advisor, said Sunday on NBC's Meet The Press.

"We've got to spend money now while we have a recession, while we've got this serious economic crisis, but as soon as the economy recovers we are going to have to find ways of getting the government's finances under some kind of control," Summers said.

Summers added that the U.S. economy faces "very difficult" months ahead, which underscores the need for U.S. Congressional approval of the Obama administration's $825-850 billion fiscal stimulus package.

Continue reading Obama Administration's Summers: Economy is worse than we thought

Obama Administration's Summers: Economy is worse than we thought originally appeared on BloggingStocks on Mon, 26 Jan 2009 11:45:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Boehnerfiscal stimulus packagegdpinthenewsObama admininistrationSummersU.S. economyMon, 26 Jan 2009 11:45:00 EST<![CDATA[What happens if the U.S. enters a 'giddy growth' period?]]>http://www.bloggingstocks.com/2009/01/23/what-happens-if-the-u-s-enters-a-giddy-growth-period/http://www.bloggingstocks.com/2009/01/23/what-happens-if-the-u-s-enters-a-giddy-growth-period/http://www.bloggingstocks.com/2009/01/23/what-happens-if-the-u-s-enters-a-giddy-growth-period/#commentsFiled under: , ,

Readers of this space know that a preferred tactic, stemming from the graduate school years and schmoozing with economists and policy wonks is to 'take the other side in an argument' or 'argue the alternate point-of-view.'

Well, one argument forwarded by economic conservatives, market absolutists and others is that the proposed fiscal stimulus package will be 'inflationary' and that it 'won't stimulate the economy.'

Arguing to the contrary...

Economist Peter Dawson took up the above argument, but only because BloggingStocks required him to do so (Ah, the power of the press!).

"A stimulus package that's both inflationary and that won't stimulate the economy," Dawson said. "Hmm? The logic is a little curious here, because inflation implies that there's demand and economic growth, and a failure to stimulate the economy implies there's very little demand and hence very little or no economic growth. The conclusions contradict, so what do the economic conservatives say the stimulus is going create, demand or no demand? I'll leave it for them to clarify their argument."

Continue reading What happens if the U.S. enters a 'giddy growth' period?

What happens if the U.S. enters a 'giddy growth' period? originally appeared on BloggingStocks on Fri, 23 Jan 2009 17:45:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>cpifiscal policyfiscal stimulus packagegdpinflationmonetary policyU.S. economyFri, 23 Jan 2009 17:45:00 EST<![CDATA[Fiscal stimulus package will contain at least $275 billion in tax cuts ]]>http://www.bloggingstocks.com/2009/01/23/fiscal-stimulus-package-will-contain-at-least-275-billion-in-ta/http://www.bloggingstocks.com/2009/01/23/fiscal-stimulus-package-will-contain-at-least-275-billion-in-ta/http://www.bloggingstocks.com/2009/01/23/fiscal-stimulus-package-will-contain-at-least-275-billion-in-ta/#commentsFiled under: , ,

The Obama administration's proposed $825-850 billion fiscal stimulus package will contain a great deal of tax cuts, and the reason is timing.

That's timing as in 'impact on GDP' and 'political timing,' so says economist Richard Felson.

Tax cuts galore

The stimulus package will contain at least $275 billion and probably closer to $300-325 billion in cut tax cuts and tax-related investment incentives because they're "the short-term, immediate-impact fuel in the stimulus engine," Felson said. "The cuts will also attract some Republicans to the plan, which is consistent with President Obama's governance philosophy."

"Tax cuts will have an immediate impact and will show up in GDP rather quickly, within 3-4 months, which will provide some demand in the economy," Felson said. On Thursday, the House Ways and Means Committee approved, via a 24-13 party-line vote, a stimulus plan that included $275 billion in tax cuts, The New York Times reported Friday. Felson said he expects selected House Republicans to vote for the bill on the House floor, and at least 4 or 5 Senate Republicans to do so, as well.

After a House floor vote, the bill will move to the Senate, where Senate Republicans may seek more tax cuts. Bill differences, if they occur, would need to be reconciled by a conference committee.

Continue reading Fiscal stimulus package will contain at least $275 billion in tax cuts

Fiscal stimulus package will contain at least $275 billion in tax cuts originally appeared on BloggingStocks on Fri, 23 Jan 2009 12:45:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>CongressDemocratsfiscal stimulus packagegdpinthenewsObama administrationRepublicanstax cutU.S. economyFri, 23 Jan 2009 12:45:00 EST<![CDATA[U.S. infrastructure building will require some pruning, too]]>http://www.bloggingstocks.com/2009/01/21/u-s-infrastructure-building-will-require-some-pruning-too/http://www.bloggingstocks.com/2009/01/21/u-s-infrastructure-building-will-require-some-pruning-too/http://www.bloggingstocks.com/2009/01/21/u-s-infrastructure-building-will-require-some-pruning-too/#commentsFiled under: , , ,

New York Times (NYSE: NYT) columnist Thomas Friedman in his latest column and again Tuesday night on 'The Charlie Rose Show' returned to his theme of the U.S. effort at nation building.

Nation building, that is, at home. Friedman, among others, has underscored the need for the nation to begin, in a comprehensive way, to rebuild its dilapidated and/or outmoded infrastructure that includes its electric grid, highways, roads, bridges, mass transit systems, schools and other public buildings.

Further, one doesn't have to be a civil engineer or a mechanical engineer to see that the nation's infrastructure has been neglected, and while at times Friedman's discourses on the gleaming magnificence of yet another high tech airport in Asia can begin to grate, his overall conclusion regarding a period of pronounced underinvestment in U.S. public assets is valid.

'Action' is a two-edge sword

Friedman wants 'radical' action, i.e. bold action by President Obama to make up for lost time, infrastructure-wise, and he believes 'Obi 44' has a rare opportunity to act in a big way, given the economic crisis facing our nation, his high public approval rating, and the general desire of public officials across the spectrum to see him succeed.

Continue reading U.S. infrastructure building will require some pruning, too

U.S. infrastructure building will require some pruning, too originally appeared on BloggingStocks on Wed, 21 Jan 2009 18:06:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>CongressDemocratsfeaturedfederal budgetfiscal policyfiscal stimulus packagegdpinfrastructureObamaRepublicansThomas FriedmanU.S. economyWed, 21 Jan 2009 18:06:00 EST<![CDATA[Obama's task: Solve the economy ... then move onto the next problem(s)]]>http://www.bloggingstocks.com/2009/01/20/obamas-task-solve-the-economy-then-move-onto-the-next-proble/http://www.bloggingstocks.com/2009/01/20/obamas-task-solve-the-economy-then-move-onto-the-next-proble/http://www.bloggingstocks.com/2009/01/20/obamas-task-solve-the-economy-then-move-onto-the-next-proble/#commentsFiled under: , , ,

President Obama (it's going to take a while to get used to typing and saying that), shared a word with former President Bill Clinton after Tuesday's historic inauguration.

Further, anyone who knows 'The Comeback Kid' knows that he often likes to share a quick joke upon meeting. Perhaps Clinton whispered something like this to Obama:

"Mr. Obama, congratulations. You are now president of these U-nited States, yes you are," Clinton perhaps said. "Now here's the bad news. You are now president of these U-nited States, yes you are."

Time to tackle only three issues in 2009

Few deny that the nation faces a veritable smorgasbord of challenges in the years ahead. What should the Obama administration prioritize in 2009?

Obviously, the fiscal stimulus package is first, at least $700 billion and preferably more than $1 trillion in size, comprised of useful, value-adding infrastructure programs, assistance to the states, unemployment insurance extension, and tax cuts aimed at encouraging investment and business expansion, among other measures.

Continue reading Obama's task: Solve the economy ... then move onto the next problem(s)

Obama's task: Solve the economy ... then move onto the next problem(s) originally appeared on BloggingStocks on Tue, 20 Jan 2009 18:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>CongressDemocratsfiscal stimulus packagegdpObamaPresident ObamaRepublicansU.S. economyTue, 20 Jan 2009 18:00:00 EST<![CDATA[On Jan. 20, 2009 in Washington, they're going to party like it's 1999]]>http://www.bloggingstocks.com/2009/01/19/on-jan-20-2009-in-washington-theyre-going-to-party-like-its/http://www.bloggingstocks.com/2009/01/19/on-jan-20-2009-in-washington-theyre-going-to-party-like-its/http://www.bloggingstocks.com/2009/01/19/on-jan-20-2009-in-washington-theyre-going-to-party-like-its/#commentsFiled under: ,

Nobody expects Prince to show up. But maybe he should.

For those under the age of 25 (or maybe even under age 30?) Prince is Prince Rogers Nelson, who, way back in the 20th century made a record or two of sociological import.

Prince should attend because all this week in Washington, and especially on Tuesday, Inauguration Day, January 20, 2009, they're going to party like it's ... well, like it's 1999.

Hail to the Chief

Ten official presidential inauguration balls will be held, with numerous other official gatherings - - just about every embassy and state delegation (many U.S. states have residences / offices where they hold receptions) - - will be throwing official parties. Then there are the countless private parties held inside and around the beltway.

A colleague living in Washington whom yours truly worked with during my three years (1996-1998) inside the beltway summed it up best this way: he never knew he had so many friends.

"I got a call from someone who said he knew me in college. Couldn't place the name," said Bill, my colleague. "It turned out he lived in my dorm at college. Maybe I spoke with him once or twice in the cafeteria. I didn't know him from Adam. Now he calls me as if we're best buddies."

And the reason this distant dorm-mate is acting like a close friend? "I've got an extra ticket or two to the inauguration," Bill said. "I guess word got around."

Continue reading On Jan. 20, 2009 in Washington, they're going to party like it's 1999

On Jan. 20, 2009 in Washington, they're going to party like it's 1999 originally appeared on BloggingStocks on Mon, 19 Jan 2009 11:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>fiscal stimulus packagegdpinaugurationinthenewsObamapresidential inaugurationU.S. economyMon, 19 Jan 2009 11:00:00 EST<![CDATA[Why the U.S. should not settle for just GDP growth without jobs]]>http://www.bloggingstocks.com/2009/01/18/why-the-u-s-should-not-settle-for-just-gdp-growth-without-jobs/http://www.bloggingstocks.com/2009/01/18/why-the-u-s-should-not-settle-for-just-gdp-growth-without-jobs/http://www.bloggingstocks.com/2009/01/18/why-the-u-s-should-not-settle-for-just-gdp-growth-without-jobs/#commentsFiled under: , , , ,

Shortly after President-elect Barack Obama, D-Illinois, is inaugurated as the 44th president of the United States, congressional policymakers are likely to act on the largest fiscal stimulus package in U.S. history, and send the bill to the new president's desk, hopefully before mid-February.

The bulk of the package provides stimulus aimed at generating economic growth -- i.e. an effort to help pull the U.S. economy out of its worst recession since at least the Reagan era recession in 1981-82.

Equation: job growth = earnings growth

Moreover, the likely programs -- infrastructure projects, energy system improvements, business investment tax credits, and aid to the states, among others -- must have as their primary focus GDP growth and the reason is obvious enough. Consumer spending and business investment cutbacks, along with declining asset prices, have reduced demand to such a degree that absent stimulus targeted to increase demand the U.S. economy will remain in recession through 2009 and well into 2010, many economists agree.

Still, what the nation does not want is a fiscal stimulus package that does not call for additional hiring, so says economist Peter Dawson.

Continue reading Why the U.S. should not settle for just GDP growth without jobs

Why the U.S. should not settle for just GDP growth without jobs originally appeared on BloggingStocks on Sun, 18 Jan 2009 10:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Democratsfiscal stimulus packagegdpjob growthjobsObamaRepublicansU.S. economyunemploymentSun, 18 Jan 2009 10:40:00 EST<![CDATA[Keynes: An economy at rest can (unfortunately) remain at rest]]>http://www.bloggingstocks.com/2009/01/18/keynes-an-economy-at-rest-can-unfortunately-remain-at-rest/http://www.bloggingstocks.com/2009/01/18/keynes-an-economy-at-rest-can-unfortunately-remain-at-rest/http://www.bloggingstocks.com/2009/01/18/keynes-an-economy-at-rest-can-unfortunately-remain-at-rest/#commentsFiled under: , ,

It is a Newtonian law of physics. A body in motion tends to stay in motion. A body at rest tends to stay at rest.

Further, as followers of business activity know, it's also a law of economics, and that's yet another argument for a large fiscal stimulus package.

Moreover, it's also a rejoinder to the fiscal stimulus plan's critics. Market absolutists and economic conservatives will frequently state that the stimulus plan isn't needed; all the nation needs to do is "let the business cycle play out, and the recovery will automatically follow the recession" or "let the market take care of things and a recovery will appear, naturally."

Not so, according to John Maynard Keynes. Keynes demonstrated that business cycles sometimes don't cycle. In fact, Keynes demonstrated that, absent key stimulus, commercial activity can be down -- and remain down -- for years. A classic example would be President Herbert Hoover's response to the 1929 stock market and the gargantuan economic slump that followed: the Great Depression. Hoover did very little, from a fiscal policy standpoint, to stimulate the economy in 1929, 1930, 1931, and 1932, and the U.S. economy collapsed in 1929, and remained in contraction in 1930, 1931, and 1932. By 1932, the Great Depression had spread across the globe.

Continue reading Keynes: An economy at rest can (unfortunately) remain at rest

Keynes: An economy at rest can (unfortunately) remain at rest originally appeared on BloggingStocks on Sun, 18 Jan 2009 08:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>fiscal stimulus packagegdpHerbert HooverKeynesU.S. economySun, 18 Jan 2009 08:40:00 EST