Stimulus package creates no economic effect - Four Months Later, Less than 6 Percent Spent
The stimulus package wasn’t a small measure, and as such it has a very big influence on the wellbeing of the economy. It was just four months ago that the nation would face economic peril were the stimulus left unpassed. But today, only 6% of all funds released through the program have been spent, and most projects won’t even begin until 2010.
Such is the case with government that they either lie, or steal. In this case, it looks like they did both.
The $816 billion stimulus package was 1079 pages long, debated for only a few short hours and only offered to congressmen and women to read for less than 24 hours. The government told us that if it weren’t passed, we’d face an economic fallout. The bill had to be passed quickly so the money would make its rounds through the economy even faster.
But even when using the government’s own metrics for how much of the stimulus has actually been spent, you might get a sense that you’ve been lied to. According to Recovery.gov, the website set up for the stimulus, only $48.2 billion has even been spent. More than $147 billion has been made available, but until that money makes its way to the economy, it has little function.
After discovering what nonsense is going on in DC I started to take a look at when most the stimulus would be spent. As an investor this is very pertinent information. The stimulus should create thousands of short-lived jobs, send money pouring through local coffers, and begin again another inflation tirade in which prices are driven through the roof.
Interestingly enough, the majority of the spending was delayed until 2010 in which $349 billion will be spent to help the economy. Keep in mind, 2010 is also an election year, proof that even in “dire economic” conditions, politics reigns over logic.
After examining when the money will be spent it doesn’t make much sense to be in the markets right now, and actually I’m now expecting a greater move to the downside before the market starts rallying in 2010, helped in part by stimulus dollars.
Its a good time to start thinking ahead, however. Commodities are going to soar, inflation is going to be back on at full speed and I would only expect that the markets would recovery even if only driven by additional inflation. Getting in at the turn of the year might not be such a bad idea, and though it may be unwise to lock in losses, we could easily dip far lower in the next six months, waiting for an artificial economic recovery.
I think that the stimulus package have helped a lot in restoring the economy. right now we can see some improvements in the economy. right now we can see some improvements in the eco”",