I'll skip the... why was the first round so small and wasted on tax cuts that don't help...

and just ask when is round two of the stimulus coming?

 

Our economy is still facing a large output gap (Via the San Francisco Fed:)

 

A weak recovery is in the works/happening now. 

 

Unemployment is going to be over 10%.  A substantial amount of unemployed or underutilized labor and capital is just sitting around.  We're going to be watching a lot more small and medium size banks fold...

 

State Budgets are going to be in worse shape next year than they were this year--as increased use of government services, a decline in revenue, and budget cuts further weakened state governments fiscal outlook. 

 

More money to the states as well as money directed at those who will spend it (rather than save it)... are going to be needed. 

 

I fear that Obama, just like on health care isn't going to take the lead.   A lack of political will--created a weak first stimulus mostly directed at tax cuts (which people for the most part save, defeating the whole.. you know... stimulus aspect of it). 

 

Getting a move on in regards to round two might help...

 

  

Posted via email from Jim Nichols