That’s in the Wall Street Journal
Economists say the money out the door — combined with the expectation of additional funds flowing soon — is fueling growth above where it would have been without any government action.
Many forecasters say stimulus spending is adding two to three percentage points to economic growth in the second and third quarters, when measured at an annual rate. The impact in the second quarter, calculated by analyzing how the extra funds flowing into the economy boost consumption, investment and spending, helped slow the rate of decline and will lay the groundwork for positive growth in the third quarter — something that seemed almost implausible just a few months ago. Some economists say the 1% contraction in the second quarter would have been far worse, possibly as much as 3.2%, if not for the stimulus.
“I’ll have Steve Moore on to say the stimulus is making it worse”-Greta Van Susteren
Obama has had less than a year to undo the GOP’s clusterfuck. He’s doing a good, not great, job, if only because the stimulus should have been a bigger package.
Meanwhile, DOW 9,300.
Dennis? Dennis?
It’s all pulling forward demand. When the “stimulus” dries up, so do the jobs and growth.
“In each and every instance of recession from 1970 onward we have “pulled forward” more and more demand and created fake “prosperity” through the creation of ever more debt that we have goaded consumers to take on. By doing so we have crippled the ability of the economy to grow, redirecting as much money as possible to a handful of people and firms (commonly known as “banks” and other “financial companies”) instead of directing that effort and money into productive enterprises such as building cars, television sets and similar items.
THIS time though the recession didn’t come from “ordinary business conditions”; it instead happened because the credit carrying capacity among both consumers and businesses hit the wall – they could no longer make the debt service payments and started to default.
It began with “subprime” mortgages but that was nothing other than the first “hiss” of trouble out of the pressure vessel as the structural integrity of the fraud-laced credit system, where “capacity to pay” became a bad joke, had begun to disintegrate.
We pushed the envelope of fraudulent credit creation and the sale of fraudulently-underwritten debt too far – and it blew up in our collective faces!
Rather than admit complicity in the myriad Ponzi-style scams that underlay all of the financial system for more than thirty years (or have it shoved in their face) The Fed and financial “wizards” along with The Bush Administration (who was responsible for and complicit in refusing to fix the fraud during the 00-07 timeframe) chose to try to sweep it under the rug with “yet more liquidity” and “yet more lending.”
President Obama and his administration made a critical error after having won in November by refusing to stand up and take these scammers on face-to-face. He decided to instead continue and even accelerate the scam!”
http://market-ticker.denninger.net/
william, translated: We must destroy the economy in order to save it!
Yes, too much credit destroys the economy, too little credit destroys the economy and regulation of credit destroys the economy. Only thing to do is to get rid of all banks, return to using iron spits for money, and massacre 9/10 of the population so we can all go back to subsistence farming. Those of us that are left, that is.
I claim Kentucky.
Or, we can flush the banks and put all the money in our mattresses into productive enterprises like building cars and teevees that nobody has any money to buy. That’s the ticket.
The well-known liberal rag the WSJ: “U.S. Economy Gets Lift From Stimulus”
http://online.wsj.com/article/SB125185379218478087.html
Err, wrong link. You’ll just have to take the WSJ’s word for it.
Unpossible! That’s never happened, ever! It’s not like Congress ever has anything to gain by a short term appearance of economic progress.
Quaker, Obama, and Rep. Pete Stark translated: “The more debt we owe, the wealthier we are”.
One of our local Pacifica hosts makes the same claim as William. That we’re essentially trying to recreate the bubble that got us in trouble in the first place. So it’s a concern of some on the left, as well.
That’s exactly right Hick.
We should be fixing what’s broken (The Fed, the banking system, Freddie & Fannie, Medicare, Medicaid, the VA, grossly underfunded pensions, and the list goes on) before spending money on new crap. It’s like when you see these guys rollin’ with 20″ rims and low profile tires (that you know cost at least $5K) on a 1985 Honda Civic with the muffler hanging on by twist ties and a broken windshield.
Yeah it would be great to give everybody whatever the “f” they want, but we G-damn can’t afford it. We’re living on top of a house of cards sitting on quick sand with a tornado bearing down upon us.
Stuart Hoffman, chief U.S. economist for PNC Financial Services Group, said the stimulus package “caused this bit of a concentrated burst [that] probably will exaggerate the pace of economic growth,”
Uh, yeah. That’s kinda the point, innit?
ex⋅ag⋅ger⋅ate
–verb (used with object)
1. to magnify beyond the limits of truth; overstate; represent disproportionately: to exaggerate the difficulties of a situation.
The only thing I can say is that the stimulus is temporary, what happens when the money runs out?? It’s just another way to make people believe that everything is going to be ok… But it’s not, unfortunately we are building a country of dependents and no one is paying attention to what is really going on.