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.

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.

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.

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.

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.

Say remember this?
……

God it is sad to see this conjunction of words

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

Only $107 billion was earmarked for spending this year

God it is sad to see this conjunction of words.

Odie1941 on April 29, 2009 at 12:21 PM

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

…

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.

$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.

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!!!

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

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

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

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

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!

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

Tank.

-Dave

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

Mew