Scary: Obama’s “Economic Stimulus” Spending May Reach As High As $1 Trillion, Over 5% Of The GDP

• December 15, 2008

To put that into perspective, American defense spending has averaged 5.5% of GDP over the last 45 years.

NEW YORK (Reuters) – President-elect Barack Obama’s team is considering a plan to boost the recession-hit U.S. economy that could be far larger than previous estimates and might reach $1 trillion over two years, the Wall Street Journal reported on Saturday.
Obama aides, who were considering a half-trillion dollar package two weeks ago, now consider $600 billion over two years “a very low-end estimate,” the newspaper said, citing an unidentified person familiar with the matter.
The final size of the stimulus was expected to be significantly higher, possibly between $700 billion and $1 trillion over that period, it said, given the deteriorating state of the U.S. economy. . . .
The president-elect is likely to be briefed by his aides on the outline of the stimulus plan next week with a view to getting it passed by Congress by the time he is sworn in next month, the Journal said.
Economists have previously said they expect Obama to quickly sign a multi-year spending package that could be worth up to $750 billion, or almost 5 percent of U.S. gross domestic product.

How can anyone think this is a good idea?
What is troubling America’s economy right now is not a lack of government spending (Eisenhower’s investment in infrastructure made an immobile country mobile, Obama’s isn’t likely to do the same thing) but rather a lack of liquidity. Americans have a lot of debt, and credit pools are drying up, and keeping taxes high to fuel Obama’s massive new spending packages is only going to exacerbate that problem. What Americans need is to keep more of their own money in their pockets, not see government become an even heavier burden on their lives and paychecks than it already is.
And even if Obama comes out with legitimate tax relief, is blowing up our already exploded national debt really a good idea?
What Obama is promising here is madness.

Tags: Domestic Issues, Politics

http://sayanythingblog.com/entry/america_is_back/#c397018 DINO

That's how high the deficit is expected to rise thanks to bush economics.

We wouldn't be talking stimulus or crisis if not for the decades of pursuing conservative economic policies.

You people have a hard time with that cause & effect thing, don't you?
http://SayAnythingBlog.com The_Whistler_ofnd

Gee, when did the deficit skyrocket? After the Clinton recession/Enron/911 and now after Bush had to sign a Democrat budget.
http://sayanythingblog.com/entry/america_is_back/#c397018 DINO

Sorry Whistler-brainstem, the truth is a little different than that.

But you knew that. Don't make me go get the charts and graphs that will only embarass you while you pretend to be right. I've already wasted too much time here.
http://sayanythingblog.com robport

That's how high the deficit is expected to rise thanks to bush economics.

So now you're going to blame Bush for Obama's spending?
http://sayanythingblog.com/entry/america_is_back/#c397018 DINO

The deficit is due to bush's policies projected forward. The metldown caused by republicans is also expected to contribute to the deficit.

You're being disingenuous in trying to tie anything to Obama seeing as he's yet to take office. We already know things are going to get much worse. That's why we forceably removed republicans from office in the last 2 major elections.
http://sayanythingblog.com robport

Obama is promising spending increases that will total 5% of the GDP.

If you're going to complain about Bush expanding the deficit, what about Obama?

Or are you deploying a double standard?
http://www.kenmccracken.blogspot.com/ Ken McCracken

That's how high the deficit is expected to rise thanks to bush economics.

Leave it to a brain-dead liberal to blame Bush for deficits when both houses of Congress are controlled by Democrats.

Being a liberal means being blind to reality.
http://magyartruth.blogspot.com/ Chief RZ

This is caused by deadbeats–people who welched on the loans they signed for. This includes, but not limited to: Mortgages, credit cards, personal loans, auto loans and even "payday" lender loans. I could relate stories of people I know who got into debt and it took them decades to repay it, but they did repay. Most of these people do not even try to pay the minimum payments. Last month's financial report indicated that about 40% of credit card holders do not even make the minimum payment.

This "stimulus" would merely be rewarding people who welch on their debts. This is wrong.
http://sayanythingblog.com/entry/america_is_back/#c397018 DINO

Chief one-note chimes in with his con propaganda that was even discredited by Bernanke:

Bernanke: CRA Not to Blame for Housing Crisis

But Mornigstar is a commie plot, right, Chief?

Deficit spending to rescue the economy from ruin brought on by conservatism is different than deficit spending to create wealth for bush's friends. That's like comparing charging food on your card when you're broke to charging a new sweater.

You people are as dumb as rocks.
http://magyartruth.blogspot.com/ Chief RZ

One person, B, is not the sole source of facts. Care to comment on the 40% of people who are not even making minimum payments on their credit cards? I do not believe they were covered by CRA. Mortgages were, and I interviewed BOA. They said almost what I thought, namely that they are forced to loan to areas that include a high percentage of people who would not have qualified for a mortgage before CRA.

It is quite simple when an adult explains it. Take out a loan. Repay it. That's it.
Otherwise, you are asking the good people to become slaves for your irresponsibility.
http://sayanythingblog.com/entry/america_is_back/#c397018 DINO

Your assertions of being some insider at BOA are fantasy.

Here's an excerpt from remarks made by the Chairman and CEO of Bank of America regarding the CRA:

I've seen a disturbing trend among some market observers, who are trying to lay primary blame for our current troubles on CRA. I think it's fair to say that in many cases CRA lending standards fell victim to the same market pressures and overconfidence we saw in other sectors of the mortgage markets. In that regard, political pressure to expand homeownership did become one of many contributing factors as the housing bubble grew. But the charge that CRA lending was the primary or foundational cause of our housing crisis is not only unfair, it's not true.

Maybe the BOA guy is a commie!

Like shooting fish in a barrel…….
http://sayanythingblog.com/entry/america_is_back/#c397018 DINO

I want to share more of the remarks made by the CEO of BofA. It's fascinating and literally blows the conservative dogma about the CRA out of the freakin' water:

Some quick history. CRA was passed in 1977 to require banks to make loans in the same neighborhoods where they collected deposits, including low-to-moderate income neighborhoods. There's no mandate to make risky loans, or to abandon sound lending principles.

Many reports and investigations, including a Fed report in 2000 and our own experience over the past 30 years, have found that CRA lending can be profitable, and need not be overly risky. The riskiest subprime lending of the past ten years didn't have anything to do with CRA… in fact, 75% of high-priced loans made by mortgage companies and bank affiliates in recent years were not covered by CRA.

Even Fannie and Freddie were not initially drivers of subprime lending. It was only in the most recent years that managers felt pressure to get in on the act as the subprime market boomed, which provides another good illustration of why organizations that have been established for a public purpose with a public guarantee ought not also be publicly traded, for-profit companies.

It is true that CRA loan portfolios are under stress right now. But that's hardly surprising. Low-to-moderate income families and neighborhoods are economically vulnerable and are always the first and hardest hit in an economic downturn. Most homeowners in these neighborhoods desperately want to stay. It's not always possible, but we must do everything we can to help these customers find the best path to financial stability.

We and other banks have engaged in this business for more than 20 years with great results. Speaking for Bank of America, we will continue to be there for neighborhoods throughout Chicago and across the country.

———-

WOW.
EXSTEW

Is this Dino character for real? Or is he some imaginary character Say Anything uses to add effect to the comment section (the devils advocate). Dino is so ignorant he has to be made up!! Nevertheless the "Dino effect" makes for good reading. Thanks for such an informative site.
http://sayanythingblog.com/entry/america_is_back/#c397018 DINO

Great addition to the debate, exstew-brainstem.
EXSTEW

It's my pleasure… Dino-microcephalic
robert108

The govt can't create economic growth, no matter how much money it confiscates from achievers and redistributes to those who didn't earn it. In fact, govt spending is anti-economic growth. The secret of our economy isn't mindless spending, it's private investment. Govt spending actually decreases private investment.
http://sayanythingblog.com/entry/america_is_back/#c397018 DINO

The government always creates economic growth, particularly during bad times. And thanks to brainstem republicans, that's what we have now.

There was a story a while back quoting an economist economist saying that without government spending we would be much worse off as government spending is contributing a lot to economic growth.

Of course, we wouldn't need to worry about propping up this deadaeconomy if republicans hadn't been so criminal in how they managed the economy when they RAN THE WHOLE THING FOR MUCH OF THE LAST DECADE.
http://sayanythingblog.com/ likwidshoe

Detroit is a perfect example of how "the government always creates economic growth". I mean, just look at the crack trade! Or the scrappers who go around gutting out buildings for the copper!

Economic opportunities abound in Detroit.
http://sayanythingblog.com/entry/america_is_back/#c397018 DINO

Talk about *yawn*.

Seems like someone is fixated on Detroit. Probably thinks he found a "magic bullet" for warding off liberals. LOL

Like I said in another thread, Detroit is part of the America that conservatism destroyed.

DETROIT DETROIT DETROIT DETROIT DETROIT DETROIT DETROIT DETROIT DETROIT DETROIT DETROIT DETROIT DETROIT DETROIT DETROIT DETROIT DETROIT DETROIT
robert108

The government always creates economic growth, particularly during bad times.

Please explain in detail how govt spending can create economic growth. Actual facts, not bullshit links, but from your own personal knowledge of economic fact.

I'll give you a hint: economic growth occurs when more value is created than consumed. This requires applying capital to labor and raw materials to make a profit. No profit, no growth. Govt simply cannot do this, since it is a property of free people making free choices in the private sector.
All govt can do is to move things around, but it cannot create economic growth.
If you don't know this, you know nothing.
robert108

Like I said in another thread, Detroit is part of the America that conservatism destroyed.

Another lie from you: the destruction of Detroit was a combined effort by Dem policies, from pandering to the unions to inner city welfare schemes, to excessive taxation and regulation by Dem govts, over several years. Jennifer Granholm is the latest Dem destroyer.
http://sayanythingblog.com/entry/america_is_back/#c397018 DINO

Detroit is but a city in a country that was destroyed by conservatism.
http://sayanythingblog.com/entry/america_is_back/#c397018 DINO

In my work and that of many other companies, work for the government- building schools, roads, etc or maintaining them, building sewage treatment facilities, monitoring pollution, managing programs, generally being civilized by running a society- is a big part of what is keeping us going. Savages like you certainly wouldn't do it.

I wouldn't expect you to understand that since all you do is sit around here.
robert108

Detroit is but a city in a country that was destroyed by conservatism.

Nice try at backpedaling, liar, but you're still lying. Detroit is a city destroyed by Dem corruption in a country founded on conservatism. It is the Dem corruption that threatens to destroy what conservative values and principles have created. We stood up against the monarchy of GB and won with our individual independence, personal freedom, economic freedom, religious freedom and political freedom. Our freedom is what permits you to spew your hateful lies on this blog with only total refutation as a consequence. You are free to speak and prosper due to conservative values and principles, not the totalitarianism and slavery of the left.
You're an arrogant, ignorant child who doesn't appreciate the country and principles that support you, even in your arrogant ignorance.
http://sayanythingblog.com/entry/america_is_back/#c397018 DINO

You are WRONG AGAIN. In fact, the conservative suburbs are seeing even MORE devastation than the cities due to the mismanagement of the country by REPUBLICANS.

Here's some poverty facts for you. Notice that the most failure is in the CONSERVATIVE RURAL SOUTH.

Persistent Poverty Counties are those that have had poverty rates of 20% or higher in every decennial census between 1970 and 2000.

340 of the 386 (88%) Persistently Poor Counties are nonmetro.

18% of nonmetro counties are persistent poverty counties, versus only 4% of metro counties.

The nonmetro South, with over 40 percent of the U.S. nonmetro population, has a significantly higher incidence of poverty. 82% of the nonmetro persistently poor counties are in the South.

You've become a gnat. A gnat that flits around one's face annoyingly. Wordsmith that too, you'll still be WRONG.
robert108

dinochild: The federal govt only has the money it confiscates from the achievers in this society, especially with the wildly-skewed tax code of today. The money it spends would be better spent in the private sector, except for a relatively small amount that is required under the Constitution for national defense and a few select infrastructure items. State and local govts should only spend that which the voters authorize either directly, or indirectly through their elected representatives. The Dems routinely violate Constitutional requirements for govt spending, and indulge in wasteful social spending, for vote buying purposes. Without the race card and wasteful social spending schemes, the Dems would never win an election until they come back to America, and stop trying to push Eurosocialism on a free country that already has a better system.
http://sayanythingblog.com/entry/america_is_back/#c397018 DINO

Your ideological ancestors were telling the colonial leaders that the King deserved to get all the money in taxes without allowing representation. They were the Tories. You people WORSHIP the wealthy.
http://sayanythingblog.com/entry/america_is_back/#c397018 DINO

That better system is gone now. Your people killed it.

Thanks!
robert108

Your ideological ancestors were telling the colonial leaders that the King deserved to get all the money in taxes without allowing representation. They were the Tories. You people WORSHIP the wealthy.

Now you show an abysmal ignorance of US History. American conservatives are the ones who defeated the monarchy. We support the Constitution, individual independence, personal, economic, religious and political freedom.
It is you leftie fascists who want to return to one-party totalitarian rule, just like the monarchies with a political royalty rather than an hereditary one.

That better system is gone now. Your people killed it.

You just keep lying! Our system is "free people making free choices", and it is you Obamunists who are trying to kill it with your totalitarian collectivist schemes, like the Dem social engineering home loan mandates that are threatening to destroy our financial and housing markets.
You want to replace freedom with govt mandates and coercion. You want to tell us what we can eat, what we can drive, how much energy we can use; complete totalitarian control of the population. No more freedom, except for your corrupt ruling elite. Obamunism will fail, just like your crap always fails wherever it has been tried. No matter how many people are murdered to try to create your Marxist utopia, you will always fail. Your ideology is a pack of lies, and the truth always shines through.
2Hotel9

Wow! Y'all got dinothefakehomo crying like a little beatch YET again. Good deal, keep it up.
Lance

Maybe if we just ignore Dino he'll go away. I think he just likes the attention. I don't mind someone that disagrees with an ideology and refutes it with lucid points, but when some moron clogs up a thread sputtering sentence fragments and untruths, it is REALLY annoying. Even still, I do enjoy reading robert108's posts, so I guess at least something good comes of this.

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Scary: Obama’s “Economic Stimulus” Spending May Reach As High As $1 Trillion, Over 5% Of The GDP

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