March 15, 2009
More Stimulus?? Why?
Well, the brain trust in Congress thinks that the first round of stimulus is not enough (how they have determined this since hardly anything has actually been spent yet is beyond me) and they are floating talk that a second round will be needed. The only thing I can think of, since this defies everything that has actually worked in the past, is that they are going to try to inflate away the consumer debt problem. And this is the least crazy answer I can come up with and it's still crazy. It looks like the $10 loaf of bread is actually going to end up being $20 - provided there is a bakery that can fund ongoing operations in that type of environment.