We fully expect Obama to create a stimulus package of this magnitude. Its a done deal. We hope that transparency will be an essential aspect of the program.
In the meantime, the article and the expression of this sentiment alone will help keep the market floating at its present stable numbers with the DOW in the high 8000s, and the S&P around 900. This is our holiday gift.
Investors love hearing this kind of news and the emotional charge keeps the mechanism buoyant, unfortunately we are stuck at floor level 3 in a 10 story building.
Yahoo: Obama looking at $850 billion jolt to the economy
Anxious to jolt the economy back to life, President-elect Barack Obama appears to be zeroing in on a stimulus package of about $850 billion, dwarfing last spring's tax rebates and rivaling drastic government actions to fight the Great Depression.
3 comments:
I'll be surprised if any of this ever reaches the street. My guess is it will be handed out and quickly absorbed as higher salaries and benefits for pols and their followings. It will disappear like a fart in a wind storm.
Unfortunately, you may be correct here.
We'll see what kind of transparency Obama will give the American public soon enough.
It's what I call a bail-out for the bureaucracy. Not that this sector needs a bail-out, what it needs is a purge. The SEC is a perfect example of what the State does badly.
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