"Calif Bill" wrote in message
news

"Tom Littleton" wrote in message
...

"Calif Bill" wrote in message
m...
How about government cutting the excess spending?

what, exactly, do you consider 'excess' spending?? Hell,
the vast majority of the budget is for defense spending and established
programs such as Medicare, Social Security
and the like.



Lots of the liquidity problems are the Government(s) excess borrowing.
Takes lots of loan money for private people and business out of
circulation.

um, not really, but I am not going to waste 3 pages explaining it to you.
Look it up.
Finally, do you(and others) understand: the principle behind an 'economic
stimulus' is SPENDING by the government. Now, you can choose to disagree
with the principle or theory behind that, but that is what it is.
As for jeff's concerns, I share them, but realize that we are facing a
situation far more dire than jacking up a federal deficit. Layoff levels
of 1/2 million souls per month will lead to a commercial collapse(and
thus commercial real estate/commercial loan collapse) that, if nothing
else, will make folks forget about the housing loan mess pretty quick, as
there is far more dubious paper out there on commercial real estate than
there was on housing, I suspect. If something doesn't stabilize both
employment levels and public confidence, and very quickly, an ugly
downturn could easily become something much worse, IMO.
Tom


A stimulus bill should not cause more problems for us and our children and
grandchildren than not doing as much. Temporary government jobs will just
postpone the recession, layoffs until the trillion bucks is spent. We had
a bailout bill passed by a Democrat controlled Congress with Republican
votes also, and look what that has done. Stimulated $18 billion in bonus
money and not stimulus or bailout. I do not want the same thing with the
next ill conceived bill. Rushed out of Congress with a few people in the
corner writing it. Look at the "Stimulus" spending. Most is not a
stimulus, but future pork. Give a forgiveness of taxes up to $3000 credit
on a mortgage, and most in trouble paying for the house will be able to
keep the house. Buy up 50% of the bad mortgages and will stop a lot of the
real estate problems and would cost a hell of a lot less than $800
billion. And we as a people need to feel some pain. We as a country have
been living on borrowed money for too long. Just like the dot.com boom,
greed has ruled. Houses are no where worth what they have sold for in the
last 10 years. My daughters condo in a beach area of SoCal bought for
$400k 7 years ago, was selling for $900k after 6 years. Lots of fraud in
the mortgage world. Not all in the banks side. Cases of people buying a
house for $200k, selling it to a friend of family member a year later for
$400k, and a 3rd F or F buying it for $700k a year later and then
defaulting on the loan. Nice profit of $500k split 3 ways in 2 years.
Good income, eh? Everybody wants the "Stimulus" bill to erase all pain,
give back all investment losses and pay for their house and gas bill.
Sounds like this is what you want. What are you going to tell your
grandchildren when they asked why did you take all our money to pay for
your excesses. Stimulus does not mean we have to bankrupt the country in
3 years. I have not seen a lot of smart in the current packages.


Seems as if the non partisan Congressional Budget Office thinks somewhat
like me.
http://www.washingtontimes.com/news/...ver-long-haul/