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Proposed "Stimulus" Plan is a Joke


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Oh come on now...we have serious, fundamental issues with the way in which money was being lent to prospective home buyers. We have serious, fundamental problems with inflation on oil, and then as a direct byproduct of that, the price of food as well.

 

And now we see yet another plan to give people money so they can shop away a recession.

 

Note to policy wonks...it didn't work the last time, it won't work this time.

 

Last time you "gave" us money, which wasn't enough to stave off the tech bubble recession. So to make up the shortfall you made sure that people who had no business trying to buy homes could get loans. ARM's, Stated Income Loans, whatever it took, just get the spending up so we can shop away the blues!

 

So that takes us to now. And you want to do the same thing all over again, huh?

 

Keep your stupid tax credit and instead work on something fundamentally sound.

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Maybe, but I see this as a core issue of money management in general.

 

To me, the idea that the government can stimulate the economy by giving out cash to citizens to spend is no less ridiculous than the notion I heard espoused all through 2004-2005 by people I knew who had marginal credit and were taking horrible 2/28 & 3/27 ARMs that were eating up half of their income.

 

I'd ask them how they planned on paying their mortgages when the rates adjusted.

 

They'd look at me as though I was an salamander and try their damndest to explain to me how simple it would be since they could just refinance at the historically low rates and besides, they'd be making so much more money in a few years that it wouldn't matter anyways.

 

Fast forward to now. Seventeen straight rate increases make rates no longer historically low. Tightened lending practices mean that those with marginal credit can no longer refi anyways. And the idea that ones income would increase magically by 30% in two to three years? A few made it, but most didn't.

 

So now I know several people who can barely pay their about-to-adjust ARMs as is. And they don't have any of those outs they kept telling me I was a fool for not understanding. They can't even sell since they're upside down in their mortgages.

 

If these same people would have saved a bit more for a down payment, worked to improve their credit scores to get a lower fixed rate, and just been a little patient they'd be in the drivers seat looking to make a screaming deal instead of about to lose their homes.

 

To me, this "stimulus" package is the same as those mortgages. It's all smoke and mirrors with no real substance.

 

It's the same as a person at a casino deciding that since they've already lost all their cash there's no good reason not to go ahead and max out the credit cards as well to try and win it back.

 

We should all know better.

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Keynes is rolling in his grave.

 

How do you figure? Not that I necessarily disagree with you, I'm just curious as to why you think so.

 

Compare sending a check to someone to giving that person a job (e.g. WPA).

 

 

I see. That's exactly where my hesitancy about this whole proposal lies. Increased transfer payments have been proven to be less effective than increased government expenditures when trying to jumpstart the economy.

 

Of course, when the primary goal is to buy votes, a check is far more effective. But then we start veering into the political...

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Oh come on now...we have serious, fundamental issues with the way in which money was being lent to prospective home buyers. We have serious, fundamental problems with inflation on oil, and then as a direct byproduct of that, the price of food as well.

 

And now we see yet another plan to give people money so they can shop away a recession.

 

Note to policy wonks...it didn't work the last time, it won't work this time.

 

I'm glad someone else thinks this is silly too. I feel sorry for those that are excited about the prospect of receiving a check... makes me sick!

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Oh come on now...we have serious, fundamental issues with the way in which money was being lent to prospective home buyers. We have serious, fundamental problems with inflation on oil, and then as a direct byproduct of that, the price of food as well.

 

And now we see yet another plan to give people money so they can shop away a recession.

 

Note to policy wonks...it didn't work the last time, it won't work this time.

 

I'm glad someone else thinks this is silly too. I feel sorry for those that are excited about the prospect of receiving a check... makes me sick!

 

 

I have no problems with receiving a check. Not everybody gets to participate in the rebates from whats being said so far just like back in 2001

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I'm glad someone else thinks this is silly too. I feel sorry for those that are excited about the prospect of receiving a check... makes me sick!

 

Then may I suggest that you return the check to the government?

 

While the merits of this stimulus can be debated, I find it hard to believe that anyone would return money from the govt.

 

I will happily keep the check and any other fund transfers from the govt.

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today I was held up, at gun point, and asked to hand over the $100 bill in my wallet. The robber felt sorry for me and gave me $3.50 in change so I could get a bus ride home. I guess I should be so happy to get this $3.50!!!! FREE MONEY!!!!!!!

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today I was held up, at gun point, and asked to hand over the $100 bill in my wallet. The robber felt sorry for me and gave me $3.50 in change so I could get a bus ride home. I guess I should be so happy to get this $3.50!!!! FREE MONEY!!!!!!!

 

Wow. He sounds like a sweetheart!!! Is he running for local mayor or something this year?? That $3.50 will sure come in handy to many families and they'll remember it.

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The success of these rebate checks will have a lot to do with what people do with it.

 

IMO if the majority of people put it towards debt reduction it won't have nearly the effect of consumers using it to buy stuff they wouldn't normally buy like clothes, electronics, downpayment on a new vehicle, exc..

 

The later is where the government wants the money to go but it will only make the economy "appear" to be doing better with the possibility of increasing inflation.

 

 

 

ben

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today I was held up, at gun point, and asked to hand over the $100 bill in my wallet. The robber felt sorry for me and gave me $3.50 in change so I could get a bus ride home. I guess I should be so happy to get this $3.50!!!! FREE MONEY!!!!!!!

 

Nice attempt to compare the govt with a robber.

 

However to get back to your scenario: Yes, I would still be happy to have the $3.50. A bus ride home beats walking home during a New England winter.

 

Back to point: Are you going to return the rebate check to the government? A yes or no answer all that is necessary.

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today I was held up, at gun point, and asked to hand over the $100 bill in my wallet. The robber felt sorry for me and gave me $3.50 in change so I could get a bus ride home. I guess I should be so happy to get this $3.50!!!! FREE MONEY!!!!!!!

 

Nice attempt to compare the govt with a robber.

 

However to get back to your scenario: Yes, I would still be happy to have the $3.50. A bus ride home beats walking home during a New England winter.

 

Back to point: Are you going to return the rebate check to the government? A yes or no answer all that is necessary.

Dear New Englander,

 

I cannot give a yes or no answer because, alas, your heros who have designed this gimmick will not be sending me a check.

 

Love,

 

Hegemony

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today I was held up, at gun point, and asked to hand over the $100 bill in my wallet. The robber felt sorry for me and gave me $3.50 in change so I could get a bus ride home. I guess I should be so happy to get this $3.50!!!! FREE MONEY!!!!!!!

 

Nice attempt to compare the govt with a robber.

 

However to get back to your scenario: Yes, I would still be happy to have the $3.50. A bus ride home beats walking home during a New England winter.

 

Back to point: Are you going to return the rebate check to the government? A yes or no answer all that is necessary.

Dear New Englander,

 

I cannot give a yes or no answer because, alas, your heros who have designed this gimmick will not be sending me a check.

 

Love,

 

Hegemony

 

^

 

Thank you for the answer. Your motivations for posting are clear.

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today I was held up, at gun point, and asked to hand over the $100 bill in my wallet. The robber felt sorry for me and gave me $3.50 in change so I could get a bus ride home. I guess I should be so happy to get this $3.50!!!! FREE MONEY!!!!!!!

 

Nice attempt to compare the govt with a robber.

 

However to get back to your scenario: Yes, I would still be happy to have the $3.50. A bus ride home beats walking home during a New England winter.

 

Back to point: Are you going to return the rebate check to the government? A yes or no answer all that is necessary.

Dear New Englander,

 

I cannot give a yes or no answer because, alas, your heros who have designed this gimmick will not be sending me a check.

 

Love,

 

Hegemony

 

^

 

Thank you for the answer. Your motivations for posting are clear.

 

 

And what are you assuming my motivation is?

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Are you going to return the rebate check to the government? A yes or no answer all that is necessary.

 

 

Don't have to. They'll take it back (plus some) at the next tax filing. Actually, I'm providing the funds for my own check this year. I'm sending them about $5K, they are "giving" me back $1,200 of it.

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