IT AINT ALL THAT STIMULATING YET… YET??

The stimulus package is getting grief because it is working too slowly, and it’s not doing all that it’s supposed to do. First, the plan was supposed to be a two-year plan, and we’re only four months into it. The plan was supposed to give out 787 billion dollars and only 56 of the 787 billion has been given out, but that’s just too much numbers and too much words. We want people to keep venting because to the media, regarding the stimulus package, that is what’s stimulating.

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THE LESSON OF IMPATIENT PATIENCE; A GEITHNER BRIGHTENER UPDATE

Treasury Secretary Tim Geithner pointed out that we need to beware of taking steps to fix the economy and then when we see a bit of progress stopping those steps. This can be compared to someone who takes medicine to get cured, and then when he/she feels a bit better they stop taking the medicine. The probable result will be a relapse of the illness. Geithner has agreed with our theory that the key to fixing the economy is “banks a lot” (to get banks lending again), but had correctly pointed out that banks only do about 50% of the lending in this economy and the rest is from secondary market securities and other such entities. So what we need to do is not just stop with bank fixing but continue the healing process by stabilizing every lending entity in the economy until we are a once again healthy stable patient.

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SUMMERS TIME AND THE GIVING AINT EASY

We hear the phrase constantly being used in sports (the quintessential version being) that’s Manny being Manny”. Sometimes this is used as an excuse, a disclaimer, or an explanation. I think that what economic adviser Larry Summer has been trying to say to the country regarding the recession is that when we bail out the banks what we have to ensure is that “banks just be banks”. That means that we should give them a portion of the bailout money, and not give them more until we see that money has been lent. The giving aint easy, but banks still have to be banks.

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AIG = AINT I GREEDY

For those of you out in Fauxvia who may consider this title a bit flip, remember we are describing a bunch of flops. Because all we have to do is watch the actions this week of the AIG Board of Directors. After being kept afloat by $170 billion dollars in bailout money, they are planning this week to give out 165 million dollars of employee bonuses. This they say, is required by pre-existing contracts, and also enabled by their friend George Bush who gave them bailouts with no preconditions. President Obama isnt pleased (to put it mildly), and Larry Summers was on record this weekend as to the administrations intent to explore every legal means to limit or eliminate this junk bonding (our words, not his) between executives and their own interests while remaining oblivious to the performance levels of their companies. This is why we now call it AINT I GREEDY.

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