Wednesday, January 28, 2009

Lairs, Thieves, and Politicians...

Unlike some others out there, I’m not going to pretend that I have all the answers to the upcoming critical vote on President Obama’s economic recovery plan. I read what some might consider an excessive quantity of political blogs and there is of course as many differing opinions as there are stars in the sky. I would say that most polibloggers I read, while admirably intelligent, have equal or less of a grasp on the impact that all the various packages being proposed might have on this nations economy. For me, all I can mentally digest is what I can observe so far. Here’s what I’ve collected in my notebook of late:

Some asshat who works for a bank that took taxpayer bailout money actually spent $1 million renovating his office, AND pushed through bonus payouts to his executive staff under the guise of, “If you don’t pay these people, they’ll leave for greener pastures…”. What a crock of shit. I DARE them to leave a job right now.

I’ve heard that Fed capital infusion of public works projects don’t work. They didn't work for the Japanese or the U.S. ‘New Deal’. Do you bail out banks, buy bad debt, bail out auto makers and greedy union fucks? Is the minority WHIP wishing failure on the president’s plan much like the Dem’s did with the troop surge plan? At some point, a call must be made. This reality is making for some sleepless nights under crisp new sheets in the private residence at the White House I’m sure.

The two best ideas I’ve heard thus far, either of which will more than likely never see the floor of either house, are $9000 individual tax stimulus and/or a prolonged tax holiday proposition. Yes, I like these ideas because they put money directly in MY FAMILY’S pocket. I kind of wonder why this would be a bad idea in anyone’s eyes. As for the $9000 check, sure some would immediately blow the cash on stupid shit, but not everyone, not this guy. To those who are unemployed, it would mean keeping their house/apartment for a few more months, payoff past due electric bills, etc… For those still employed like me it would mean paring down some debt to put ourselves in better position if for some reason I find myself out of work. A few months ago, I said I was totally cool with the bank bailouts despite the spoils going to those who created this disaster, but after hearing about failing companies giving out bonus payments I’m of the mind that from this point on that the tie goes to the citizen. Can’t decide who should get money? Give it back to the citizens. Let US decide who were going to give it too, how it’s saved or spent. To me, you receive a bonus when your company meets or exceeds predetermined financial objectives. When you don’t achieve these, you don’t get a bonus. It’s as simple as that. There have been times in my career when we got no bonus at all, and times when we got double the plan. That’s how it works.

For what ever plan gets passed this week or next, I hope that our law makers are smart enough to write in language that reserves the Fed’s right to review compensation packages of ALL employees and ensure that reasonable goal based bonus compensation is managed honestly. If you can’t sign up for that, don’t ask for the money.

As for the President, welcome to your dream job. I say rollout your plan and stand by it, GOP support or not. If you're so sure that your detractors have nothing worthy to add (as I said, I've not a clue that they do or not) than what's done is done, High risk, high reward my friend. I, for one, am hoping that whatever it incompasses it works.


At 6:35 PM, January 28, 2009, Blogger mike said...

I like the $9000 idea. But I would totally blow the cash on stupid shit.

At 7:56 PM, January 28, 2009, Blogger Dave Cavalier said...

And Obama debuts his awesome, world-changing version of bipartisanship by getting his "stimulus" package passed without a single Republican vote and 11 democrats voting against.


Obama is Pelosi's bitch at the moment.

At 10:38 AM, January 29, 2009, Blogger Tony Alva said...

I'm not completely pesimistic, but I'm readying the bunker just in case.

At 2:52 PM, February 01, 2009, Anonymous Anonymous said...

You're supposed to blow the $9k on stupid shit. If you save it or use it to pay off debt you're not doing your duty as an patriotic American consumer.

I want a boat, and a hummer and a plasma tv and a boob job for the little lady and a crummy harley and tatoo on my neck and a foreclosed Mcmansion .......


At 2:11 PM, February 02, 2009, Blogger Mathdude said...

This stimulus vs. rebate check debate boils down to, from my simplistic understanding, $1.50 back in the economy for every $1 doled out under a stimulus vs. $.75 for every $1 doled out under a rebate. So why would a rebate ever be a consideration? Because its effect is felt much, much faster. So Obama (again, my simplistic understanding) is betting we can hang in there in the short run and recover much better in the long run with a stimulus package. I'm with you: he's the victor, let him roll the dice and look like a genius or idiot depending on the results.

At 1:09 PM, February 03, 2009, Blogger Dave Cavalier said...

Mathdude -

You are right, your understanding is simplistic. That $1.50 into the economy number is just a Democratic talking point. Also, remember that there is no secret pile of "U.S. Government Money" sitting on the sidelines waiting to be deployed into the economy. The money has to be extracted from the economy first and this has attendant administrative costs.

There is an absolutely bizarre talking point going around Democratic circles that we can't give a tax break because people will just save that money. This is just whistling past the graveyard reasoning. We are in trouble because we as a nation, at the State and Local level and personally, levered the living bejeesus out of ourselves. There is no spending your way out of that. The economy as a whole needs to deleverage. Americans using tax cuts to save or pay down personal debt is a far better long term result than this supposed spending package.

At 1:01 PM, February 13, 2009, Blogger billions said...

I'm in favor of the "Trickle-up" approach.

In my house $1 equals $1.

Let them sprinkle all that Stimulus down near the roots and watch what happens.

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