If the US savings rate is now climbing for the first time in over a decade, where is the stimulus money going to wind up. If you answer, 'in the bank by way of savings or debt reduction', then ask yourself this ..... Where is the net jobs increase coming from if consumption America is shedding jobs faster than the Fed gov America can create work. And, who will be the bigger winner. regards f9
Just as trading is an exercise in problem identification and solution, so is the US economy. Nothing is complicated nor overly simple .. they are both simply problems. This rescue package that O is waving about is scary in my opinion, very scary, but if it doesn't seem to bother our US amigos, then I imagine we all stand back as a deep hole just becomes deeper. regards f9
It is interesting nobody wants to run with this one. Had the traditional savings rates been maintained, this mess would not have occured. But when you feed a credit problem with more credit just watch what happens. Greenspan lives on. regards f9
One of the most powerful assets US built (along with the military) was a strong consumer base feed internally from a powerful manufacturing base. A mistake was made with the dot.com bubble and instead of allowing the country to adjust, it was offset by a one-off transfer of manufacturing to Asia plus absurd mortgage lending. Now US has lost it's manufacturing base at a time when it needs jobs, jobs jobs. Opportunity comes from deep holes and here is an opportunity for US to re invent itself into the future, and of course this will bring with it some pain. But no no no, the plan is to push forward whilst watching the revision mirror. Forwards into the past. regards f9
But the stimulus money is free money, so it's better than doing nothing when you don't have to pay the money back.
"free money" thinking put you into the mess in the first place. All you are proposing is to keep on digging a deeper hole. regards f9