Seeking Alpha

stock_creeper's  Instablog

| Write a new Instablog post
Send Message
Stock market researcher, investor
  • Economic Quadrant and No, the Economy is not Dependent on Stimulus  [Edit or Delete]0 comments
    Jul 13, 2011 10:24 AM
    If I had to choose the 3rd box, 2009-present, is overwhelmingly bullish - even more so than the 90's. What do you think will happen in the 4th box?  

    And to address another pervasive myth repeated by the gloomers, the US economy is not dependent on stimulus nor is the fed entriely repsnsible for this huge econmic boom and asset inflation phase we're in. The main reason why commodities and multinationals are doing so well is because of a falling dollar, speculaton, and huge foriegn demand. The bottomline of strong performing stocks like CAT GE IBM MCD has been affected by Obama's stimulus or Bernanke's repurshaing programs only minimally, if at all. There's no connection between large cap tech stoks such as Apple, Amazon or Google and stimulus.

    The overwhelming evidence is that the stimulus was a failure, in that it created no jobs

    All of this despite the preponderance of evidence showing that federal infrastructure spending is not the boon for the economy that Obama claims. In fact, the Congressional Budget Office, the Congressional Research Service, and the Government Accountability Office have all concluded that such spending has at best a marginal impact on employment, and may even yield a net loss in jobs.

    The jobs that were created by infrastructure spending “represented less than 1 per­cent of about 5.8 million jobs created by the economy since the act was passed.”

    The stimulus really did fail:

    Bernanke's efforts were intended to rescue the banks and encourage them to them to lend.  Despite the banks hoarding the money, S&P 500 profits and earnings are still blowout quarter after quarter. So even when Bernanke's programs fails like Obama's stimulus, it's not the end of the world. When the Obama stimulus runs out I guarantee there will not be a double-dip recession in 2013. Nor will there be a recession when Bernanke finally begins raising rates or if there's no QE 3.

Back To stock_creeper's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Full index of posts »
Latest Followers


More »

Latest Comments

Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.