Public Works and The Economy
Will Ramped Up Public Works Stimulate the Economy?
Yes, of course it will, that’s obvious. If you hire more people to build and repair roads and other infrastructure, more people will be earning money. Less people will be out of work. People will have more money to spend. It is blatantly obvious that it will stimulate the economy. Is that a good thing? Not always.
When an economy is on the brink of depression it is an excellent thing. So what is the problem? Is there a down side? Yes like eating too much ice cream, there is always a down side. Sure is good going down but then there is that bulge and if you don’t’ change your ways or partake in moderation, it may end up with a coma. I just love ice cream! Same holds true with government spending.
Depression or Auto Bailout
Automakers and The Bailout
The automakers showed up in Washington again on Thursday. Some are calling it “Bailout Thursday”. Part of me wants to test GM. GM says it can’t make it to the end of the year without help. That’s not that far away! I think they’ll make it.. I really do hope so.
One congressman, that I saw, asked again, where’s the plan to turn this around. What are you going to do to fix it. How will you start making money? He went on to say that if they showed up at a bank with this type of information, the loan would probably be denied.
Mortgage Information
My Newest Website
I have a new website up that I thought would mention. After doing some research I noticed an opportunity and need for a website about mortgage information. You’re probably thinking there are a ton of mortgage sites out there and you’re right. There certainly are.
Without giving to many of my secrets away, I’ll just say that I saw a sub-niche that wasn’t being addressed very well and I thought I’d try to fill it. It is a bit of on experiment though. So I’ll just have to see how it goes.
American Currency
American Currency Will Fall?
American currency, dollars if you prefer will likely fall in December. The US dollar usually falls in December, at least in an article published by the Wall Street Journal. But these are not normal times and the downward spiral may be stronger than usual.
If GM Fails Who Will Benefit
American People Will Be Hurt The Most?
It seems to me the people least likely to be hurt by a failure of General Motors are the same people that can most afford it. If General Motors files bankruptcy, sure the stock will tank but over the long haul, it will do just fine. The stock value will eventually recover.
Thus the stockholders which I’m sure includes employees at every level will be hurt the least over the long run. The exception being the employees working on the assemble line. Their contract will be re-negotiated if there is a bankruptcy and they will loose benefits, one would assume. That is the argument many are making for letting it fall into bankruptcy.
China Announces $580 Billion Stimulus Package
China Announces Economic Stimulus Package
In anticipation of G20 Economic Summit set for Washington next week China has announced a 580 billion dollar economic stimulus package.
About 10 years ago, China led in an effort to stimulate the Asian economy. At that time, China issued bonds to pay for construction of roads, bridges, and other infrastructure and it was considered to be highly successful.
Bailing out Detroit Again?
Here a Bailout, There a Bailout Every Where a Bailout
Detroit is the brain of USA auto manufacturing. From there thousands of suppliers of both parts and services branch out and provide jobs for even more Americans. It is an important US manufacturing business. A quick destruction of this industry would be devastating.
The industry has been in trouble for many years now. Since the 80’s the auto industry has been in trouble to one point or another. The conventional thinking of meeting the demand is just not going to work any more. Too many others can meet the demand. Instead, we must change the demand. The only way to do that is produce something that people will want once they know they can have it.
Credit Shortage! Where Did The Money Go?
The Velocity of Money and the Effects on Credit.
You must know now that the US and the world is in the midst of a financial crisis. If you’re like me, you’re very confused. I’m a little less confused but I’ve been asking questions and doing research. I’ve spent a lot of time on why credit is so hard to get. I hope this article will help you understand more about this very complicated process. Even the experts are often wrong, sometimes even the interpretation of what the economic numbers mean.
Have you asked where the money went? Why do the banks suddenly not have the money to loan? Did you assume like me that the banks have money but were afraid to let it go? That is a part of it but not the whole story, not even the biggest part of the check.
