I’ve got to tell you, when it comes to this stimulus plan, I don’t know whether to laugh or cry.
That’s how ridiculous it is.
I mean it was only two weeks ago when President Bush came out and said that the nation’s "financial markets were safe and sound."
This week, however, that tune has changed entirely. One day it’s "safe and sound" and the next it’s something more like a full on panic.
The funny thing is the market isn’t buying any of it. And why would anyone else?
It’s as seat-of-the-pants as it gets.
Anyway here are some of the details on this latest bit of boob bait.
From AP by Andrew Taylor and Deb Riechmann entitled: Bush calls for $145 billion economy plan.
"President Bush embraced as much as $150 billion in tax relief on Friday to jump start the lackluster economy. If Congress passes an economic stimulus package, the country will be "just fine," he said.
Bush said in a White House announcement that such a growth package must also include tax incentives for business investment and quick tax relief for individuals. To be effective, he said an economic stimulus package would need to roughly represent 1 percent of the gross domestic product – the value of all U.S. goods and services and the best measure of the country’s economic standing.
Later, visiting a manufacturing plant in Frederick, Md., about 50 miles north of Washington, Bush said: "We need to get this deal done and get it out."
"I believe we can come together on a growth package very quickly," the president said. Earlier, he had said, "There is a risk of a downturn."
Treasury Secretary Henry Paulson said 1 percent of GDP would equate to $140 billion to $150 billion, which is along the lines of what private economists say should be sufficient to help give the economy a short-term boost.
Paulson said the largest part of the stimulus package would be targeted to individual taxpayers. One Republican official, speaking on condition of anonymity, said Bush was hoping to target about $100 billion toward individuals and about $50 billion toward businesses.
"The cost of not acting has become too high," Paulson said. "We must act now."
Bush has gone down the tax rebate road before. Back in 2001, he added refunds of up to $300 per individual and $600 per household as a recession-fighting element of the tax cut plan that had been the centerpiece of his 2000 campaign.
Economists said a reasonable range for tax cuts in the new package might be $500 to $1,000. Congressional aides said the White House plan is looking at rebates of up to $800 for individuals and $1,600 for married couples, but Paulson said the administration wants to be "intentionally not specific" in public to avoid poisoning the well with Congress."
So there you have it.
In order to put Humpty Dumpty back together again, each American family is going to get a helicopter drop of $1600 to blow at Wal-Mart.
Are they out of their minds?
A calamity is about to happen in the bond insurance world and they are buying us with our own money- all of it borrowed of course.
Here’s an idea.
Maybe they should use that $145 billion to back stop those troubled bond insurers like MBIA Inc. and Ambac Financial. Because when they default it will set off a daisy chain of events that will crush everyone in their path.
Instead, they want us to go to the mall—just like after 9/11.
It’s madness I tell you.
When I get my $1600 I’m using it to buy some gold.
Now that’s funny.