$700 Billion Economic Stimulus Bailout Package Essay

$700 Billion Economic Stimulus Bailout Package Essay

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If Shakespeare were alive and had recently met Henry Paulson, the question that he might have posed would have been – To $700 Billion or not to $ 700 Billion ?

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...

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...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

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