Story Comments

As is the norm in our inside out, upside down, a$$ backwards country, the savers (i.e.responsible people) lose out and the profligate, irresponsible people are bailed out.

I am glad to see someone talk about the adverse effects of interest rate cuts for saving, which I thought was supposed to be an American virtue. It is abundantly clear that our Fed Reserve administrators and politicians do not want U.S. citizens to save but wish instead constantly to feed the maw of the God Consumption. They need to stop tinkering with interest rates and unhelpful tax rebates.

Insightful article. Another way to look at the 'stimulus package' is the following:

Let's say you owe XYZ bank a sum of money (Say $20,000) on which you are making payments of $500 per month.

The bank sends you a check of $600, tells you it is a 'rebate', adds it back on to the principal, continues to charge you interest on it and tells you to 'spend it'. Rebate or 'smoke and mirrors'?

Good summary. My portfolio is down about 10%, but it is still above the baseline I established when I retired three years ago.

The one bogeyman is the employment numbers that are subject to missing infection points and subject to 'rationalization'. A lot of announcements are coming out about employment downturns, which could still have a lag effect.

Goarmy1, give me a break. Those programs have needed correcting long before Bush was in the White House. Dems are just as culpable: I didn't see Pelosi saying anything negative about the stimulus, except how to structure it. So is the American public for being unwilling to take the medicine.

Nobody likes recesssions, BUT what is going to restrain inflation and make housing, goods and services affordable other than a recesssion? Borrowing money so you can give it away is stupid as well as being irrational.

I guess this is the Bush legacy; he couldn't simplify the personal income tax code, save Social Security from future bankruptcy, as well as some other entitlement programs, so he throws money into the wind as he leaves the White House.

excellent analysis, one which i haven't seen elsewhere.

I couldn't agree more with this article, one other negative to this fiscal manuevering is increasing INFLATION, this rate cutting, stimulus package will be stoking the fires of inflation. On Tuesday, gold and oil were trading lower, already they are marching toward their old highs and pushing beyond. The fed needs to ignore the market/politicians and focus on our long term economy. Look at the ECB, they are sticking to thier guns and looking past thier noses. Sometimes like the author said, reversion to the mean is needed to put things in balance.