Stimulus 2.0 Is Coming – Will The Public Allow It?
The real economy is in shambles, despite trillions of cash being thrown at the symptoms: housing, banking, etc. Because the real economy is unlikely to rebound to any significant extent in my opinion, it’s only a matter of time before politicians begin pushing stimulus 2.0. Add in the fact of looming commercial real estate crises and broke state and local governments, and you have a clear slam dunk, right?
Amazingly, there are already politicians discussing the need for a second stimulus. This is insane since the majority of the first stimulus isn’t even spent yet. While I don’t think the stimulus would work, if you did believe in its effectiveness, why would you push for a second bill when less than a quarter of the first one has been spent? What planet are these morons living on?
The question will be the public reaction. Many Americans are already pissed off about the first stimulus (myself included). A few trillion dollar bills too many perhaps for our blessed leaders. Interestingly, tonight’s elections in New York, New Jersey and Virginia may be a reflection of this disdain for deficit spending (you can make an argument either way). The results tonight will be interesting.