Scenes From a Spending Spree

In the first place, "everything" won't be done at once, the political process will make sure of that. In fact the real concern is that nothing will be done and if we know one thing about this kind of crisis, it is that it will only get worse if nothing is done.

The problem is what can be done that will help? No one, especially the economists, really know. Recently one ecomomist ran the numbers and stated that we don't have enough money in the system to take care of the credit problem while others are talking 1.4 trillion just for the bailout. We have to grow the economy but we are at one of those extreme points in which the standard fixes (be it tax cuts, credits, etc.) are not going to work and doing nothing (or letting the market correct itself) is a recipe for a third world economy in the US. Something radical and jarring has to be done to get us out. It may be that anything has a chance to work that appears to be radical an jarring if only to get confidence back in the market and get it working again.

I suspect that any solution will have major problems but that eventually, if enough is done to raise the confidence in the market, it will work. Most likely it will take ten or so years to do it if those economists who are in despair are correct. So far, only the Democrats have offered anything but in typical fashion have done so without boundaries. The Republicans are able to temper this somewhat, but will no doubt appear to be more hooverian in context of the history of this problem in the long run unless they can show some imagination. So far it is business as usual or nothing (!) being offered. (Country First, my ass.)

The Democrats are business as usual to some extent, but they have to deal with President Obama who seems to have his head screwed on properly and who sees the extent of the problem. For now the 11% or so approval rating of the Congress is well deserved.

Eventually we will muddle through. The political landscape will change as a result, but we have the ability, critical mass, and resources to get through this world wide depression.

"After eight years of Bush inaction and deadlock, the exhilaration of rapid movement is understandable,"

(Phffft)

" but does everything have to be done at once?"

No. The slump is serious and there are arguments in favor of "sufficient" stimulatory acts by government, but no, everything doesn't have to be done at once. That introduces the panic and hype and hysteria and sensationalism that unfortunately is at hand (and used to push for more spending than would be prudent or even merit recommendation in the worst case). Also, not everything is being done at once. We haven't resorted to extreme measures like a "carry tax" on currency (to diminish its value over time) or wealth taxes in the name of coercing people into raising their consumption, much less to inflation, the likely long-term thing sought by the Democrats, though not hyperinflation.

The House stimulus bill recalls those old TV game shows with contestants racing the clock to fill shopping carts, items spilling into the aisles in a mad dash to the checkout counter.

That is superb imagery, and it would be laugh out loud funny if it weren't so despicable.

'Well, drunken sailors tend to be spending their own money,' Tony said. 'By contemporary standards they're quite prudent.'

If they did nothing else but prop up homeowners with letting them off the hook for just the interest on their payments for one year, people would stay in their homes, housing values therefore would stablize, bank's bad paper would regain strength, new loans would start being made to new enterprises..stimulating the tax base. More people would have more income to spend on durable goods...boosting sales in the retail industry, cars included.

But you see, there is one fatal flaw with that plan: no $50 million dollar private corporate jets for the uberrich. So yeah, it'll get shot down.

I'm telling you, instead of scattershot, they should hit that one little duck and watch the nation get back on her feet. If we make the same mistake France did just before the Revolution, making sure the aristocracy is tended to at the expense or the poor at the end of their ropes..there will be no more country left to party in for the rich. Trickle-down is a MYTH amongst greedy humans. No better example of that can be seen than the recent attempt to purchase a $50 million dollar jet with bailout money FROM THE POOR who will ulitmately pay the tab.. They really are at the crossroads of making the exact same mistake Louis and Marie did.

Relieve the interest on homeowner's mortgages.. Put the money there to shore up the banks for a year. Watch things grow back on the financial moonscape...

Or listen to a bunch of spoiled rich babies whine about tax cuts for the superwealthy and watch heads roll...an d a nation go down the commode. I think it took like two centuries for France to recover from that blunder. Put on your seatbelts, we're in for a LOOOOONNNNNG rough ride if the GOP gets its way..

Elections have consequences. And Republicans blew their conservative cred during the Bush years.

Where were the Republicans when Bush expanded entitlements more than anybody since LBJ? They were silent.

Their suddenly discovered fiscal conservatism reads more like partisanship than principle.

If we're going to have large government spending, we might as well have it in the hands of a party that ideologically favors it instead of a party that thought it could buy off a handful of elderly voters while still claiming the mantle of Ronald Reagan.

Silhouette, well said. A well-aimed rifle would be better than the shotguns and bazookas and clubs and frying pans we're using now.

George Will made the excellent point that as long as the government keeps dreaming up new handouts for financial firms, the smart move for them is to do nothing and wait to see what's doled out next. Above all, the economy needs a stable set of rules of engagement with the government so that entrepreneurship and greed can work their usual magic.

Yes, it is partisanship on their part as it is Obama's. If Dems want the "spending" program, you have the votes with 2 measly, count 'em...2, Senate crossovers.

Just get on with it and stop this charade of needing bi-partisan consensus. Pelosi set the rules of the real game last week. Obama's comments are essentially political
cover and fluff.