Finan¢ial $en$e: More Stimulus?? Why?

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.

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Disclaimer:

David Keepes aka Dave K. is the writer for this blog titled "Finan¢ial $en$e". He is NOT a registered investment adviser nor does he work in any capacity for an SEC-registered, or any other, investment advisory firm. He writes in an educational capacity and urges and expects anyone who reads his posts and comments to not rely on them for accuracy, and for any reader to perform their own due diligence in regards to all investment and retirement matters. David holds a BA in Economics from the University of Illinois and an MBA from Eastern Illinois University. He is also a permanent Certified Cash Manager since 1995. He lives in Carrollton, Texas, with his wife and one child. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks.

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