On September 26th, 166 American economists including 3 Nobel Prize winners asked Bush not to go ahead with his “Golden Men” team’s brilliant $ 700 Billion package calling his plan a “subsidy” for business. Robert Lucas, a 1995 Nobel Prize winner and a University of Chicago economist says ``It doesn't seem to me that a lot decisions that we're going to have to live with for a long time have to be made by Friday.'' So is this $ 700 Billion something good?
Before pondering on this you must remember, its not only the 300 million US citizens only that will be impacted but rather the ripples will be felt by 6 Billion people across the globe not by this act but rather the outcomes from his actions
The US gave almost $ 150 billion of refunds to tax payers in February this year hoping to revive the economy and for all that what Bush Junior got were a couple of months where sales of Wal-Mart picked up. After that? You guessed it right! More freebies! The $ 200 Billion of Fannie and Freddie Mac guarantees, the $ 75 Billion AIG loan and still no change! The recent $280 Billion that was just given a few weeks back, where has that gone? The big banks have swallowed all of it in their coffers to prop up balance sheets but this has not reached the real economy, so why would $700 Billion dollars which is just the total of the all the above figures stand to be any different? You don’t give checks to people who are going to use this money to stock it up in their lockers to feel good about themselves and especially not to those who articulated the entire epic so far which is turning o...
... middle of paper ...
...ting what Marc Faber said in June 2008 and is now a big hit in the forwarding community ''The federal government is sending each of us a $600 rebate. If we spend that money at Wal-Mart, the money goes to China. If we spend it on gasoline it goes to the Arabs. If we buy a computer it will go to India. If we purchase fruit and vegetables it will go to Mexico, Honduras and Guatemala. If we purchase a good car it will go to Germany. If we purchase useless crap it will go to Taiwan and none of it will help the American economy. The only way to keep that money here at home is to spend it on *********** and beer, since these are the only products still produced in US. I've been doing my part."
If you haven’t yet found out what the asterisks are google it! ;-)
Sushil Thaker- Working with a Big 4 Accouting and Consulting firm
Also at http://trashcanresearch.blogspot.com
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- In December 2007, caused by the housing bubble, what is known as the Great Recession began (“The Great Recession”). Prior to this, people kept buying houses with high risk loans, because their mortgage-backed securities were technically making profits when the house values increased; however, when the house values started to decrease, those securities became worthless, thus people were not able to pay for the house—many people had their house confiscated. As a result of this wealth loss, consumer spending decreased sharply and many banks collapsed.... [tags: The Housing Bubble, The Great Recession]
1069 words (3.1 pages)
- President Barack Obama signed The American Recovery and Reinvestment Act on February 17th, 2009 into law. This Act was an effort to jump-start the economy, and also to save and create millions of jobs in America. Obama selected Vice President Joe Biden to over look the application of the Act, while working with cabinet members, the nations governors, and mayors to make sure the implementation of the Recovery Act are not abrupt, but as efficient and effective as Obama intended. The Recovery Act called for $825 Billion which changed as it moved through Congress.... [tags: U.S. Government]
900 words (2.6 pages)
- The Bush Stimulus Package President Bush has just unveiled his new $674 billion economic stimulus package. The Democrats, although they have little chance of getting it passed in the GOP-controlled Senate, have countered with a plan of their own, with a much lower tab of $136 billion. The centerpiece of the Bush plan is arguably the elimination of the tax on dividends paid by shareholders, which makes up a hefty $364 billion of the entire sum. The reasoning is that it is unfair to tax corporate earnings once and then again tax them when they are paid out as dividends to shareholders.... [tags: Essays Papers]
909 words (2.6 pages)
- Question: There has been a lot of discussion about on the implementation of the Treasury 's $700 billion financial bailout plan lately. Some analysts have suggested using the fair-value approach to evaluate the distressed portfolios that Fannie Mae and Freddie Mac hold. It sounds like a solution that could significantly reduce the bailout funding required. How does a fair-value approach evaluate those distressed portfolios. Answer: First, what is the fair-value approach. The fair-value approach is not a new concept.... [tags: Subprime mortgage crisis, Debt]
701 words (2 pages)
- ... In the voting process, the bill was approved first at the House then at the Senate; no one from Republicans voted for the bill at the House, and no Democrats voted against the bill at the Senate, proving that the bill was largely supported by Democrats but was strongly opposed by Republicans (“About ARRA”). The critics of ARRA point out how it did not accomplish the goals to an extent which Obama initially intended, and that it only put the country into more trouble than without it. They argue that unemployment rate, shovel-ready infrastructure construction projects, poverty number, green-economy jobs, and hybrid car production were all not at the projected level (Reince).... [tags: high risk loans, stimulus package]
1059 words (3 pages)
- In these current economic times, people have lost jobs. People have lost faith in the economy since the worth of their money keeps falling. Businesses are failing left and right because of the lack of confidence in the system. Banks have folded because of the amount of people who are unable to pay their loans, leaving the banks without funds. The auto industry is failing as people cannot afford the new cars being produced by Detroit. Confidence in the economic system of the United States is very low.... [tags: U.S. Government ]
1711 words (4.9 pages)
- In the age of globalization and development, almost 80% of world populations are living in poverty. In the 20th century, after decolonization when most of the countries got their independency, it did not work how they wanted to. Most of the countries especially African countries, fell into deep poverty and debt which they could not stand on their feet. This paper will shed lights on the economic struggles of democratic republic of Congo and the reasons behind it then suggest some solutions. Bottom billion countries is a term that is used to referring to those countries which are falling behind or falling apart economically (Collier 2007).... [tags: poverty, congo, bottom billion]
1582 words (4.5 pages)
China Global Financial Crisis Forced The Chinese Authorities For Launch An Aggressive Stimulus Package And Adopt A Loose Monetary
- The 2008 global financial crisis forced the Chinese authorities to launch an aggressive stimulus package and adopt a loose monetary policy. In the year of 2014, Chinese GDP exceeded 10 trillion dollars. Economic growth on such a scale was considered as to become unsustainable at some point. To some extent, therefore, China’s latest slowdown was inevitable. Some economists concluded that the past ten years for China’s economy is a period with imbalanced structure. Rapidly growing economy has posted many difficult challenges including rapid urbanization, high inequality, challenges to environmental sustainability and some external imbalances as well.... [tags: Macroeconomics, Economic growth, Inflation]
736 words (2.1 pages)
- Paul Collier’s book is about the future of the world. Most of the world is on the positive trajectory set by growth and prosperity. The 21st Century is the age of the middle class. For most of the world, things are looking up. However, Collier is concerned with a group of countries that are not part of this trajectory. Collier is concerned with approximately 58 countries that constitute about one billion people, or 20 percent of the earth’s population (Collier 7). This “bottom billion” group belongs to countries that are not progressing with the rest of the world’s pace; in fact, they seem to be diverging and falling apart when everyone else around them are growing.... [tags: bottom billion, world trade, state sovereighty]
1817 words (5.2 pages)
- Introduction In 1907, Jim Casey and Claude Ryan founded American Messenger Company, a delivery and errand service, from a small-spaced basement office. As their service grew, the Seattle teens began making small package deliveries for local stores. The company’s name changed to Merchants Parcel Delivery, and the founders later changed their name to United Parcel Service (UPS) after acquiring Motor Parcel Delivery in Oakland, California. Today, UPS is the world’s largest package delivery corporation with about 18.3 million packages and documents transported per business day throughout 220-plus countries.... [tags: United Parcel Service, FedEx, Package delivery]
1045 words (3 pages)