Why The Stimulus Will Succeed Or Why it Will Fail...

Quote from risktaker:

Well, my point is more along the lines of...if you tell millions of kids you're #1 over & over, the country gets the sense that it'll always be that way as they grow up and nothing will change. Look at today's kids...lazy, entitled, want it now attitudes.

But,

Last month China surpassed the US in auto sales/production for the 1st time. Did you know that?

The european bloc countries if considered as 1 market are bigger than the US in GDP terms.

Many foreign-made products are better than their domestic counterparts (which was not the case years ago).

The US is no longer a "leader" in businesses like banking, insurance, automobiles, computers, etc, etc

One by one these industries keep going to foreign hands.

US is the undisputed #1 in 3 areas: Military (so far), food production (so far), and foreign debt!

But food production, especially the kind the US produces is a LOW margin business.

And unless the US intends to have WW3, military power doesn't pay the bills.
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Fair enough, I see what you're getting at.
 
Quote from TopTrader8:

Instead of congress whining like they did when the Tarp funds were used to buy preferred stock in banks that still refused to lend, why couldn't they just demand that an ultimatum be given to the banks that the government would began to liquidate their preferred ownership if the banks didn't get off their butts and start giving credit to everyone again? Seems to me that this is still an option. Am I wrong?
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I think the banks won't care that much if the government liquidates their preferreds, the banks already have the cash in hand. They don't have put options in them, they would have to sell on the secondary market, which they are allowed to do.

It would soak up market demand for any new preferreds the banks might want to issue, but in the short term I doubt that would matter b/c the banks can't issue that stuff at reasonable prices now anyway. And taxpayers would take a bath on those things - bought them at par and would have to sell cheap.
 
Stimulus will fail to stimulate the economy.

It will make effect in 16 to 24 months from now.
It does not aim at the real problem "housing market".

Doom to failure.
 
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