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Stimulus Plan: Cotton Candy or Oatmeal?
The government's new economic stimulus plan? Whaddya think? Is it just going to be an economic sugar high? Or will it be the nutritious, high-fiber oatmeal needed to get our economy going again? (Read about it here)
Let us know at .
For Starters ...
Handing everyone some money and telling them to go spend it however they will is good on some level. If nothing else people get to feel a little better.
But how much of that money is just going to end up going to consumer electronic stories (good for Best Buy [BBY
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] and Circuit City [CC
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], I guess) or gas pumps (Exxon [XOM
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] always seems to win, doesn't it?) and then,
through various steps, back to China or Saudi Arabia or somewhere else beyond our borders? Does that spending chain really help our economy grow or does it just keep it busy for a while?
Many argue the money is better spent getting companies to invest in new ventures and jobs. Well, there's some business tax breaks that should help in that regard. And letting Fannie Mae and Freddie Mac jumping into jumbos may loosen up housing action and give the homebuilders a kick (high-end builders like Hovnanian [HOV
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] could use some of that). But those moves may take a little longer to have an effect.
Over the last couple of days, being on mail bag duty, I've gotten an appreciation for CNBC viewers/readers and their perspective. A lot of you are pretty smart out there. So we decided to start this blog as a forum for hearing what you have to say. We obviously won't be able to repeat everything ... but we're definitely interested and hope to at least give a sampling of how the CNBC audience is feeling. And so this is my backhanded way of welcoming you in.
So whaddya think about the stimulus plan? Let us know here:
Some Answers ...
It's cotton candy. The government should spend the $150 billion to prop up the bond insurers since that is where the real problems are. But politicians like to hand out cash, especially in an election year, so that's what is going to happen. -- Walt Arzonetti It’s definitely too little for each individual. The way the dollar is now, not worth much, I would imagine most people will be paying off bills. --Susan in NC All that the government will be "stimulating" through this plan is more of the same reckless overconsumption that got us into this mess. Let's face it: You cannot solve the problem of unaffordable mortgages by raising Fannie and Freddie caps and thereby making it easier for people to get unaffordable mortgages (implicitly backed by the government, no less!). -- Kevin Bottom line is we spend way too much and we are dictated by the mass marketing machines of T.V., print, radio, and internet advertising. -- Joseph While I won't refuse money from Uncle Sam, this plan is completely backwards. All it amounts to is an advance on your 2008 tax return. (You will have to pay taxes on this money!) Most people will spend it on stuff made in China, thereby thwarting the intent to boost the US economy. -- Zach Even a glorious $600 'rebate' every year for the rest of my life will only give me a slight boost of happiness. For, I am smart enough to know that $600 only goes so far, and when it's found money I will spend it any darn way I choose (read: frivolous consumer items). I will not spend it on a new car, home or any such big ticket item...and I certainly won't invest it! -- Sonya Really bad candy! -- Thomas
Data is a real-time snapshot *Data is delayed at least 15 minutes
