Obama was angry that Merrill Lynch used $1.2 million of TARP money to remodel an executive suite. Excuse me, but didn't Merrill have to hire a decorator and contractor? Didn't they have to buy the new furnishings? What's the difference in that and Merrill loaning that money to a decorator, contractor and goods supplier to remodel Warren Buffet's office? Either way, stimulus in the private sector occurs. Are we really at the point where the bad PR of Merrill getting a redecorated office in the process is reason to smear them? How much money will the Obamas spend redecorating the White House residence?
Hello everyone, sorry I’ve been away. I do wish everyone is doing well in these economic hard times. If it pleases this court, I would like to start something new today. Talking to our esteemed Mister Oak, he noted that something would be nice to fill in the weekend shift. Well, today I would like to submit “Econ’ Notables & Quotable”.
Stimulus, stimulus, everywhere the buzz word stimulus, but where is the devil, you know that creature who screws up the details?
Navigating the politics, the lack of analysis, the specifics and more importantly, the time line of effectiveness is not for the faint of heart. To that end we must start with the latest publicly available legislative text.
The Bill Text
The working title for the bill is, The American Recovery and Reinvestment Plan . The bill is also in a state of flux. The House states the bill will be formally introduced on 01/26/09.
It seems like all commentary on the situation of America today is put into the context of post-WWII. That's like studying the history of Rome, but ignoring the 500 years of history that happened before Ceasar's armies crossed the Rubicon. If you intentionally limit your vision of the world then you will eventually be caught off-guard by larger trends.
This problem is especially true in the field of economics.
The fact is that the financial system, as it was structured in 1944, was an experiment. No one knew if it was sustainable, and it certainly wasn't intended to last forever.
That world has been slowly, and increasingly, breaking down for the last several decades, but because no one looks more than 65 years into the past no one can imagine a different world. Everyone is terrified of the "unknown", when in fact is isn't unknown at all. It's just different.
Yes this is an incredible title but an incredible pattern is emerging. First we had the notorious we want to be a Chinese company offshore outsourcer CISCO CTO, Padmasree Warrior being considered for our Government CTO.
Now we have reports of another notorious offshore outsourcer and promoter of labor arbitrage of engineers, Symantec CEO, John W. Thompson, being considered for Commerce Secretary, the slot vacated by Bill Richardson.
The House of Representatives today voted against releasing the second part of the $700 billion TARP funds to the Obama administration.
The House by 270-155 passed the resolution, but the measure has virtually no chance of becoming law. The Senate last week rejected a similar resolution, thus allowing the Obama administration to tap the remaining $350 billion in the Troubled Asset Relief Program (TARP) created last fall.
For years on both sides of the great partisan divide, manufacturing as well as some members of Congress have been asking the administration to do something about China's currency manipulation. The Bush administration refused. See Geithner's answer on China's currency manipulation during the confirmation hearings:
Earlier this week I wrote a piece on how bailed out banks have been speculating in oil markets.
Today, more evidence that the banks haven't learned that in the end speculation is a zero-sum game has emerged. At the same time that Goldman Sachs has been taking TARP funds, the bank is purchasing foreign firms involved in energy speculation.
but where is the devil, you know that creature who screws up the details?
It's Friday Night! Party Time! Time to relax, put your feet up on the couch, lay back, and watch some detailed videos on economic policy!
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