The Final Stimulus Bill?

As someone who believes the school of thought that government action is needed in times of economic crisis I am glad that the stimulus bill is finally through Congress.  It does not signal a short-term recovery, however.  As noted in today’s WSJ,

The latest version of the economic-stimulus package is expected to provide less near-term support for the economy and make it less likely that the economy will pull itself out of recession before late this year.

The stimulus bill could have done a couple of nice things: provide short-term stimulus or provide a psychological boost to the markets.  It will do neither.  On the other hand, I believe it will help keep us out of an extended recession/depression.

Recovery this year, or perhaps even early, next seems overly optimistic at this point.  A Japan Scenario is the real fear I have and this bill may help us avoid that.

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One response to “The Final Stimulus Bill?

  1. Any stimulus offered by the government is only intended to lure private capital off the side lines and back into activity resulting in commerce and economic growth. The challenge is with the lawmakers to craft laws allowing for transparent price discovery and liquidity without choking off the volume of activity.

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