GDP takes a licking in Q1

posted at 12:12 pm on April 29, 2009 by Ed Morrissey

We knew that economic performance looked bad all along, but just how bad got revealed today by the Department of Commerce.  Despite massive government interventions, the economy performed almost exactly as badly in the first quarter of 2009 as it did in the last quarter of 2008.  Wall Street took it in stride, at least early, reversing two days of losses (via Jim Geraghty):

The U.S. economy shrank at an annual pace of 6.1% in the first quarter — almost as much as it did in the fourth quarter of 2008, according to a government report Wednesday.

The drop was much worse than expected. According to economists surveyed by Briefing.com, expectations were for a drop of 4.7% in gross domestic product, the broadest measure of the nation’s economic activity.

The first quarter decline was the second biggest drop recorded in 26 years, behind only the fourth quarter reading. GDP fell 6.3% in the last three months of last year.

This puts a  big hole in the Obama administration’s economic projections for the next year, and also for the long term.  The OMB based its deficit projections on an assumption that the US economy would return to growth this year, which this GDP puts in severe doubt.  With the economy barely moving towards the positive from the worst quarter in 26 years, these numbers look like sheer fantasy:

Even the CBO numbers, in dark red as opposed to OMB/WH pink, assumed some limited growth in 2009.  Without that growth, the revenues will fall short of even CBO estimates, and we could be looking at a $2 trillion deficit this year and deepened deficits throughout the next several years.

Thus far, we have spent almost $3 trillion on bailouts and another $800 billion on stimulus packages.  Clearly, these have not led to recovery.  The bailouts were sold as ways to prevent a catastrophic collapse of the economic system, but thus far lending has not increased (for good reasons) and we’re still seeing bankruptcies ahead for GM, Chrysler, AIG, and others.  Six banks failed their stress tests this week, as Stephen Spruiell notes, which may prompt even more government intervention.

Some will say that the stimulus package has not had enough time to work.  It passed in mid-February, though, and six weeks of government spending didn’t move the needle.  That highlights its greatest weakness: it doesn’t actually provide short-term stimulus.  Republicans kept pointing out that most of the spending came after 2009, and half of it after 2010, when by the Obama budget projections the economy would already be in recovery.

After almost $4 trillion in spending and commitments, we’re still where we were in the 2008Q4.


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Supposedly, the banks were going to suddenly start lending again in April.

Never happened.

Del Dolemonte on April 29, 2009 at 12:15 PM

Banks got an upgrade today and consumer spending (70% of our economy) made a nice rebound, which is making investors happy.

BadgerHawk on April 29, 2009 at 12:16 PM

Makes me angry every time I see that deficit chart. Keep showing it, Ed, it is a real motivator to stay involved.

catlady on April 29, 2009 at 12:17 PM

How does that match the bank stress test assumptions?

danking70 on April 29, 2009 at 12:17 PM

After almost $4 trillion in spending and commitments, we’re still where we were in the 2008Q4.

Yeah, Ed, but look at the puppy and be thankful that we have such a beautiful, hot, sexy, cool rockstar president.

carbon_footprint on April 29, 2009 at 12:17 PM

So the stock market is up 150? I don’t get it.

Someone’s playing with the DOW.

stenwin77 on April 29, 2009 at 12:19 PM

I asked this before but where can I find information on how the “stimulus” bill is helping… list of shovel ready projects that have started, how money for the San Fran mouse stimulated anything, status of/effect of remodeling the governmental offices, etc.? This was shoved through as an emergency stimulus bill. If that’s the case, shouldn’t the economy be looking up due to these projects?

txag92 on April 29, 2009 at 12:20 PM

Where is that chart located, so I can get a copy????

catlady on April 29, 2009 at 12:20 PM

6.1 is absolutely brutal.

lorien1973 on April 29, 2009 at 12:21 PM

He inherited it all from Bush. Not his fault. He’ll get it fixed. He has a plan. Have faith.

a capella on April 29, 2009 at 12:21 PM

The DOW will and has traded within a 500 point range and will so as large investors, hedge funds and asset managers attempt to eek out paltry profits, within a set cycle.

Expect it to remain between 7700 and 8200 for quite some time now, regardless of the overall economy.

These folks make money on trades, both up and down.

A better indicator is your 401k, net net each quarter. Why? Because a set 12b1 fee is assessed and a management fee is fixed – therefore as stocks trade within these values – you will not see a net net gain for some time now.

I will bet $100 the market will be down big tomorrow – as the index hits its ceiling (8200ish)and those large investors take profits within the range.

What few people know is 75% of NYSE stocks and 65% of NASDAQ stocks are automatically “bought and sold” electronically, due to formulas and triggered by set parameters, as opposed to 25% and 20% just 10 years ago.

Odie1941 on April 29, 2009 at 12:21 PM

The bailouts were sold as ways to prevent a catastrophic collapse of the economic system,

… and replace it with the much more dangerous catastrophic collapse of our monetary system. Great …

progressoverpeace on April 29, 2009 at 12:21 PM

Glimmers of hope.

artist on April 29, 2009 at 12:22 PM

Will the Republicans use this to bash Obama?

promachus on April 29, 2009 at 12:23 PM

It passed in mid-February, though, and six weeks of government s

pending didn’t move the needle.

Ed, I don’t think any economist predicted that six weeks of government spending would change the GDP. Also, these numbers don’t differentiate between the first 6 weeks of Q1 and the second 6 weeks (after the bill passed), so this analysis is silly even if anyone expected 6 weeks to make a difference.

After almost $4 trillion in spending and commitments, we’re still where we were in the 2008Q4.

I know you just like to add snarky quotes like this, but this is obviously not true. You can’t point out that most of the spending doesn’t happen until later while also saying that we’ve spent it all and it hasn’t worked.

tneloms on April 29, 2009 at 12:23 PM

Sorry for the misuse of the blockquote.

tneloms on April 29, 2009 at 12:24 PM

doesn’t matter, the democRATs will be chanting OBAMA OBAMA even as the economy gets worse, and even if we get hit again…as we almost certainly will…

He’s their savior, their messiah…

right4life on April 29, 2009 at 12:24 PM

The numbers to watch are the unemployment numbers.

From the stimulus plan, it said unemployment would start falling in July due to the in flux.

If unemployment is still on the rise by then (hint: it will), then the GOP really has a big hammer to start hitting the people on the head with.

lorien1973 on April 29, 2009 at 12:26 PM

With Capt. Obama at the helm the good ship USA is taking on water and the band is still playing. Look for the good ship USA to sink even further in the 2nd QTR. By the end of the 3rd QTR with Cap & Trade and a nationalized Health Care system ready to fire up – under Capt. Obama’s watch the good ship USA will slide into the murky depths of the depression ocean.

izoneguy on April 29, 2009 at 12:27 PM

He’ll get it fixed. He has a plan. Have faith.

a capella on April 29, 2009 at 12:21 PM

And what plan might that be? Government control over the auto industry? Check. Socialized banks? double check. Universal Healthcare? check. check. check.

pullingmyhairout on April 29, 2009 at 12:27 PM

After almost $4 trillion in spending and commitments, we’re still where we were in the 2008Q4.

Thank you for running this today while the MSM and Obama supporters are having their 100th Day love fest. This explains why I’m not celebrating.

jix on April 29, 2009 at 12:28 PM

Oh, and I forgot – Cap and Trade? yup. Card Check? double yup. Dictating how much money people in the finanical industry can make? yup. yup. yup.

Plan? His only plan is to cram a bunch of unsustainable governmental programs down our collective throats and send the bill to my kids.

Thanks, but no thanks.

pullingmyhairout on April 29, 2009 at 12:30 PM

“Carter’s back
He’s the man behind the mask
And he’s out of control”

Alice Cooper inspired.

the_nile on April 29, 2009 at 12:33 PM

This is bizzare. Economy free-fallin’? Ahh, no worries there!

youngO on April 29, 2009 at 12:34 PM

Can’t lend to people to don’t want to borrow either.

Socmodfiscon on April 29, 2009 at 12:35 PM

From the stimulus plan, it said unemployment would start falling in July due to the in flux

……..
The msm will simply rewrite history.

It truly is as easy as that.

artist on April 29, 2009 at 12:37 PM

the drop is all BOOOSH’s FAULT!!

he’s manipulating the economy using a form of MIND CONTROL….

right4life on April 29, 2009 at 12:39 PM

The way bho and d’s think, this gives them the green light to get trillions to ‘help’ get us back on track.
L

letget on April 29, 2009 at 12:39 PM

Odie1941 on April 29, 2009 at 12:21 PM

Thanks for that breakdown.

Baxter Greene on April 29, 2009 at 12:41 PM

Barry can’t make them scroll past this.

Christien on April 29, 2009 at 12:41 PM

right for life has it. Democrat response ‘Bush’s fault’. . .can I eat my waffle now?

ThackerAgency on April 29, 2009 at 12:41 PM

He inherited it all from Bush. Not his fault. He’ll get it fixed. He has a plan. Have faith.

a capella on April 29, 2009 at 12:21 PM

Really now, Obama has never run a Lemonade stand for a profit! His plans are to trash the economy, successful so far, Nationalize Industry, Health Care and create a Socialist State. Wake up!

old trooper2 on April 29, 2009 at 12:43 PM

Obama has heard about the GDP and is “furious”.

LibTired on April 29, 2009 at 12:44 PM

The numbers to watch are the unemployment numbers.

Here’s my anecdotal contribution: I was laid off the Friday before Thanksgiving and haven’t been able to find so much as a day’s temporary work since.

Whee!

Kensington on April 29, 2009 at 12:48 PM

artist on April 29, 2009 at 12:37 PM

It’s hard to rewrite a graph that is on Obama’s recovery.gov site.

lorien1973 on April 29, 2009 at 12:49 PM

He’ll get it fixed. He has a plan. Have faith.

a capella on April 29, 2009 at 12:21 PM

And what plan might that be? Government control over the auto industry? Check. Socialized banks? double check. Universal Healthcare? check. check. check.

pullingmyhairout on April 29, 2009 at 12:27 PM

What is maddening about this is that the American people overwhelming are opposed to Obama’s plans.

His high marks are a result of the MSM having their lips pressed so firmly to his butt and the American people being willing to give him and his proposals a chance.
Every President gets a probationary window of opportunity before cynicism sets in.

What is interesting is that according to this article(and many others I am starting to see),These approval numbers don’t reflect the attitudes and opinions of the general public when the issues are broken down:

Obama sows seeds of demise
By Dick Morris
Posted: 04/28/09 05:45 PM [ET]
http://thehill.com/dick-morris/obama-sows-seeds-of-demise-2009-04-28.html

When the Obama administration crashes and burns, with approval ratings that fall through the floor, political scientists can trace its demise to its first hundred days. While Americans are careful not to consign a presidency they desperately need to succeed to the dustbin of history, the fact is that this president has moved — on issue after issue — in precisely the opposite direction of what the people want him to do.

But beneath this superficial support, Obama’s specific policies run afoul of the very deeply felt convictions of American voters. For example, the most recent Rasmussen Poll asked voters if they wanted an economic system of complete free enterprise or preferred more government involvement in managing the economy. By 77-19, they voted against a government role, up seven points from last month.

When this paparazzi cycle runs it’s course,people are not going to be buying the activism that the MSM is selling and will be holding the Obama administration accountable for huge deficits,higher taxes,less jobs,and trouble overseas that will surely come with the policies of capitulation that
Obama supports.

Baxter Greene on April 29, 2009 at 12:56 PM

Yeah for Obama, he’s our man, if he can’t bankrupt us, no one can!

*loud cheering*

therightscoop on April 29, 2009 at 12:57 PM

And what plan might that be? Government control over the auto industry? Check. Socialized banks? double check. Universal Healthcare? check. check. check.

pullingmyhairout on April 29, 2009 at 12:27 PM

A new way of doing things. He still has a few sectors left to heal,…health care, agriculture, and energy.

a capella on April 29, 2009 at 12:57 PM

It’s hard to rewrite a graph that is on Obama’s recovery.gov site.

lorien1973 on April 29, 2009 at 12:49 PM

Come on, how many times has Obama SCRUBBED his campaign and WH sites?

Easy as that.

Even if it remained, the msm would ignore it.

If they don’t report it never happened.

artist on April 29, 2009 at 12:57 PM

DNC talking points are to position any criticism or linkage of this abortion to Obama as blaming the emergency room team for the cause of the crash.

Alden Pyle on April 29, 2009 at 12:58 PM

It’s okay. Barack sees the light just over the horizon.

Bob's Kid on April 29, 2009 at 12:59 PM

I asked this before but where can I find information on how the “stimulus” bill is helping… list of shovel ready projects that have started, how money for the San Fran mouse stimulated anything, status of/effect of remodeling the governmental offices, etc.? This was shoved through as an emergency stimulus bill. If that’s the case, shouldn’t the economy be looking up due to these projects?

txag92 on April 29, 2009 at 12:20 PM

You’d think. You’re supposed to find info here
http://www.recovery.gov/

but it looks like a shell game to me.

scalleywag on April 29, 2009 at 12:59 PM

What’s important is that the economy sucks for everybody now, and really; isn’t that more “fair?”

Star20 on April 29, 2009 at 1:00 PM

Lending issues. The Geithner administration is telling us the terms on the lenders side of a loan are not enforcible. A democrat or any old judge can change loan contracts at will or reduce principal. OK? I see we need the memeo.

Lending should be bad until they can feel like America will go back and dnforce contract law.

seven on April 29, 2009 at 1:07 PM

What’s important is that the economy sucks for everybody now, and really; isn’t that more “fair?”

Star20 on April 29, 2009 at 1:00 PM

Heh, I preferred the economy that was good for me and sucked for the non-producers. Ahhhh – the good ole days.

izoneguy on April 29, 2009 at 1:08 PM

Clearly, the recession started in Q3 of 2008, as Q2 had positive growth. Yet we keep hearing about being in a recession since 2007.

It looks like all of this spending has managed to so far make this a long, deep recession instead of a quick, shallow one. Good job./

Count to 10 on April 29, 2009 at 1:11 PM

You’d think. You’re supposed to find info here
http://www.recovery.gov/

but it looks like a shell game to me.

scalleywag on April 29, 2009 at 12:59 PM

Thanks to pointing me to recovery.org. A couple of things:

1. I would NEVER trust the BO administation to tell the American people the truth.
2. All of the numbers provided are guestimates.
3. No specifics are provided.

I would still like to know what direct affect the “stimulus” bill is having. Should I call Joe?

txag92 on April 29, 2009 at 1:12 PM

This is terrible news!

Wait! I know what will fix it- another stimulus! A bigger one!
/sarc

VanPalin on April 29, 2009 at 1:12 PM

I wonder if any of the negative growth has to do with planning for the Marxist administration, given the quarters it went so Red?

jp on April 29, 2009 at 1:14 PM

So the stock market is up 150? I don’t get it.

Someone’s playing with the DOW.

stenwin77 on April 29, 2009 at 12:19 PM

Mostly it just overshot on the down side. You can see from a year plot, there is a ‘quick’ drop starting in mid Feb, and it has asymptoted to 8000 since then. The rest is just jitter. The Dow is going nowhere until the Obama externatity has passed.

Count to 10 on April 29, 2009 at 1:17 PM

“Thus far, we have spent almost $3 trillion on bailouts and another $800 billion on stimulus packages.”

Can anyone name a single government social engineering project that has actually worked and is not filled with graft, theft, and corruption……………?

………….. just one will do.

Seven Percent Solution on April 29, 2009 at 1:18 PM

This can’t be right – Chrissie Buckley says Barry is doing a heckuva job.

corona on April 29, 2009 at 1:19 PM

I would still like to know what direct affect the “stimulus” bill is having. Should I call Joe?

txag92 on April 29, 2009 at 1:12 PM

Given how little money has actually been payed out at this time, the primary affect would be discouraging private investors from doing anything with their money.

Count to 10 on April 29, 2009 at 1:19 PM

So the stock market is up 150? I don’t get it.

Someone’s playing with the DOW.

stenwin77 on April 29, 2009 at 12:19 PM

Go back and look at a chart of stock prices after 1929. There will always be spikes, but you can never see a TREND until after the fact.

But the GDP doesn’t lie. All the “unforeseen” GDP losses caused by the massive Socialism projects of the last few months are going to magnify the federal revenue deficit.

We’re starting out this depression with governent spending above 50% of GDP. And because there is No Way In Hell the Democrats are going to cut a penny of social spending, every percent GDP drop will result in TWICE that much taken out of the economy (one way or another) by the government – further depressing the economy…

In other words, this ain’t 1976, or even 1929. What’s going on now is going to go from a vicious cycle to a complete collapse VERY quickly.

logis on April 29, 2009 at 1:20 PM

Oh the GDP takes a licking….could have sworn I saw this headline yesterday, but thought it said GOP takes a licking. Nice start Barry.

chief on April 29, 2009 at 1:22 PM

Can anyone name a single government social engineering project that has actually worked and is not filled with graft, theft, and corruption……………?

………….. just one will do.

Seven Percent Solution on April 29, 2009 at 1:18 PM

Just qualifying as a “government social engineering project” dooms something to failure, almost by definition.

Count to 10 on April 29, 2009 at 1:24 PM

Shrug, baby, shrug.

Mew

acat on April 29, 2009 at 1:24 PM

the drop is all BOOOSH’s FAULT!!

right4life on April 29, 2009

Nnnoo… Don’t say THAT, you’ll give the Statists a NEW talking point.

Soon they’ll blame EVERYHTHING on him!!!!!!!!!!
/sarc

Fake8 on April 29, 2009 at 1:24 PM

the economy is doing exactly what Obama’s handlers intend for it to do.

Tank.

-Dave

Dave R. on April 29, 2009 at 1:37 PM

But businesses pulled back on spending a great deal in the first quarter, as purchases of equipment and software declined at a 34% annual rate, the sharpest decline in 50 years. This drop accounted for 2.6 percentage points of the overall decline in GDP.

Businesses also slashed their inventories by more than $100 billion during the quarter, the biggest drop on record. That contributed another 2.8 percentage points to the drop in GDP. State and local governments also cut back on spending.

You mean to tell me that impending tax hikes result in businesses spending less and reducing their inventories?!?! Say it ain’t so! Don’t they realize that Obama has promised unicorns, rainbows and fluffy bunnies?
/sarc

Onus on April 29, 2009 at 1:39 PM

Can anyone name a single government social engineering project that has actually worked and is not filled with graft, theft, and corruption……………?

………….. just one will do.

Seven Percent Solution on April 29, 2009 at 1:18 PM

ahahahahahahahaha, good one!

scalleywag on April 29, 2009 at 1:41 PM

Can anyone name a single government social engineering project that has actually worked and is not filled with graft, theft, and corruption……………?
………….. just one will do.
Seven Percent Solution on April 29, 2009 at 1:18 PM

Good question… problem is the Statist won’t answer that because there isn’t one

Fake8 on April 29, 2009 at 1:48 PM

C’mon, people. Be patient. Obama hasn’t had enough time yet.

Now keep repeating that every 30 days no matter how bad the news gets.

Doughboy on April 29, 2009 at 1:52 PM

Know how the japanese people knew they were losing WW2?

Reports of the locations of glorious victories of the Japanese army were getting closer and closer to home.

lorien1973 on April 29, 2009 at 1:58 PM

Thankfully, Pelosi and Reid did not rule out a second stimulus injection…

Throwing a lot more pretend money at the problem will most surely work the second time around.

myrenovations on April 29, 2009 at 2:03 PM

Can anyone name a single government social engineering project that has actually worked and is not filled with graft, theft, and corruption……………?
………….. just one will do.
Seven Percent Solution on April 29, 2009 at 1:18 PM

Let’s make it easy:

Name ONE TIME where Socialism,Communism,Fascism,Marxism, Leninism,Stalinism,Statism,Nazism,Collectivism…. take your pick

HAS EVER WORKED!!!

Fake8 on April 29, 2009 at 2:20 PM

$800 billion on stimulus packages.

Actually, we haven’t.

Only $107 billion was earmarked for spending this year. The bulk was aimed at next year- re-election year.

Virtually no “infrastructure” spending occurs this year.

drjohn on April 29, 2009 at 2:21 PM

The first quarter decline was the second biggest drop recorded in 26 years, behind only the fourth quarter reading. GDP fell 6.3% in the last three months of last year.

But the Pravda economists try to put a positive spin on the numbers,

“Well … we are very happy to note that the 36th time derivative of economic size might be reducing and we believe that it is close to 0.”

/sarc … but that is essentially what they’ve been saying.

progressoverpeace on April 29, 2009 at 2:24 PM

Odie1941 on April 29, 2009 at 12:21 PM

Excellent analysis.
Let me go see what my 201(k) is doing. /snif

ChicagoBlues on April 29, 2009 at 2:45 PM

Only $107 billion was earmarked for spending this year

God it is sad to see this conjunction of words.

loudmouth883 on April 29, 2009 at 2:49 PM

Those “green shoots”? Weeds.

Rae on April 29, 2009 at 3:02 PM

God it is sad to see this conjunction of words

You’re right. It crossed my mind but what the heck…

drjohn on April 29, 2009 at 3:07 PM

The first quarter decline was the second biggest drop recorded in 26 years, behind only the fourth quarter reading. GDP fell 6.3% in the last three months of last year.

But the Pravda economists try to put a positive spin on the numbers…

progressoverpeace on April 29, 2009 at 2:24 PM

When is the last time the US had TWO quarters like that in a row? The math is going to get a LOT more simple as time goes on.

As I recall, Baghdad Bob was talking up a storm in the months leading up to the invasion. And as the troops came in, he just kept talking faster and faster. But a couple of years later? Not so much.

logis on April 29, 2009 at 3:13 PM

As I recall, Baghdad Bob was talking up a storm in the months leading up to the invasion. And as the troops came in, he just kept talking faster and faster. But a couple of years later? Not so much.

logis on April 29, 2009 at 3:13 PM

I don’t think we’re going to make it a couple of years with what these lunatics have done (and plan to do). It’s clear that they have realized that it doesn’t matter what they say or how much they lie. They get away with absolutely everything. The Precedent doesn’t even pretend to be trying to tell the truth about anything. It’s just one idiotic statement after another. I’m still trying to figure out how he got away with mocking conservatives by condescendingly (LOL) telling us how spending is all that stimulus is – but that was a few thousand stupid statements ago. Unreal.

This country won’t wake up until we get the second hit of the credit crisis, as back in October, when we are staring right into a monetary black hole that could suck us up the very next day. Morons.

progressoverpeace on April 29, 2009 at 3:35 PM

ChicagoBlues on April 29, 2009 at 2:45 PM

I feel for you Chicago.

If you have the time – take a look at this roster of mutual fund performance over the past 5 years.

http://screen.yahoo.com/a?cc=1;&s=nm&vw=6&db=funds&b=1

It’s long and detailed as to a few thousand mutual funds – but compare it to the 10 year DOW track record:
http://finance.yahoo.com/echarts?s=%5EDJI#chart8:symbol=^dji;range=19990401,20090428;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on

A 401k is nothing more than a ponzi scheme to fund traders and asset management’s pockets.

For all of the hoopla about it “being your future” – herein lies the problem: What % of people actually make money, net, net over the course of 401k’s? – which have been around for awhile, but took off in the 80′s.. we are approaching the “30 year” avg of its hyper funded existence, i.e. the “promise” of fruition.

It isn’t pretty. I am not saying some people are smart with trades and or make money – but the majority of people are relying on other people to play with their money. There is a reason why variable annuities blew up 10 years ago…

2 main indicators of invested wealth exist in the retirement domain:
1) fixed accounts will always outperform variable or self directed. It is why state, federal gov workers and union folks generally retire handsomely. (avg NYS teacher retires with $785,000 after 30 years) – and are able to invest more pretax than “common folk”, i.e. 401k participants.
2) Up until the 1990′s, companies funded 75% of an employees retirement package. Not now, the tide is the opposite – companies on avg fund only 25% of an employees retirement account – even the “matching portion, which at best is 5% of pretaxed income.

Guess where the shift ends up… in asset management pockets.

The tired line and idiocy of “if your young, put more in growth; if you are old – put less in growth” concerning 401k’s has nothing to do with performance and everything to do with damage control of these companies. There are hundreds of thousands of people who “thought” they were retiring in the next few years, but after total net worth of assets plummets (each 8 year cycle – do the math), like now – and you are SOL. Factor in younger folks who have been giving the highest %, combined with growth oriented stocks/equities over the past 5 years – and you have net losses across the board.

As a former financial rep – here is my advice: put 95% in fixed instruments and stop listening to liars from asset management companies concerning “guidance” If you bought a 30 year T-Bill at 5.75% – guess what you get paid regardless of the current T Bill rate… 5.75%

If you can stomach losing 100% of your monies – go for the growth drivers… just like the craps table in Vegas.

Lastly – guess what “uber rich” families do concerning investments to maintain that wealth, it ain’t Vegas.

Odie1941 on April 29, 2009 at 4:35 PM

Some will say that the stimulus package has not had enough time to work. It passed in mid-February, though, and six weeks of government spending didn’t move the needle. That highlights its greatest weakness: it doesn’t actually provide short-term stimulus.

The stimulus was badly cobbled together by congress based more on giveaways than on economic objectives.

It is doubtful that any stimulus package–even mailing checks out would have had much effect on Q1. That said, the stimulus probably won’t help Q2 or Q3 much either.

dedalus on April 29, 2009 at 5:29 PM

The stimulus might not have had enough time to work, but the point is that even if it does work it will not be long term growth you see.

I can understand some stimulus if it is targeted to employment right now and costs a whole lot less money, but this is just ridiculous. Look at those charts.

I can also see putting some money into the financial sector to keep it from collapse…. if it is proportional and will be paid back like the S&L money was. But once again, this is just ridiculous.

It has gotten out of hand and it will do more harm than good.

Terrye on April 29, 2009 at 6:46 PM