From the MSM: "fiscal restraint"

[ASH]

I got a big kick out of this story on the ABC News website (sourced by the AP): Obama Looking at $850 Billion Jolt to the Economy. My favorite part was this:

While some economists consulted by Obama's team recommended spending of up to $1 trillion over two years, a more likely figure seems to be $850 billion. There is concern that a package that looks too large could worry financial markets, and the incoming economic team also wants to signal fiscal restraint.

A-ha-ha-ha-ha-ha-ha-ha!!!!

[santafe2]

Re: From the MSM: "fiscal restraint"

...the incoming economic team also wants to signal fiscal restraint.

Fiscal restraint is code for rooting out the evil of supports for wooden arrows while spending a billion times as much on items critical to our national security and our very survival as a nation. Watch out wooden arrow people, your time of reckoning is nigh. We can't possibly spend $850B without putting your heads on a pike, (or a wooden arrow), to show fiscal restraint.

[GRG55]

Re: From the MSM: "fiscal restraint"

Fiscal restraint is code for rooting out the evil of supports for wooden arrows while spending a billion times as much on items critical to our national security and our very survival as a nation. Watch out wooden arrow people, your time of reckoning is nigh. We can't possibly spend $850B without putting your heads on a pike, (or a wooden arrow), to show fiscal restraint.

Well here's another $30 Billion of critical spending coming up...

AIG Writedowns May Rise $30 Billion on European Swaps

Dec. 17 (Bloomberg) -- American International Group Inc., which already has suffered more than $60 billion in writedowns and losses, may have to absorb almost $30 billion more because of flaws in the way its holdings are valued...

...The U.S. rescue plan announced in November, the government’s second effort to save AIG, covers only its most troubled credit-default swaps, about 20 percent of the $377 billion on the insurer’s books as of Sept. 30. Under the plan, a new government-backed entity will acquire collateralized debt obligations with a face value of $72 billion that had been insured by AIG swaps. An initial transfer of $46.1 billion of CDOs was announced on Dec. 2. A second fund bought troubled residential mortgage-backed securities with a face value of $39.3 billion, AIG said on Dec. 15.

Wider losses may cast new doubt on whether the federal funds will be enough to prop up AIG, the biggest U.S. insurer by assets. The U.S. package almost doubled from the $85 billion approved in September to save the company from bankruptcy...

Wouldn't it be a scream if AIG, which is dispensing "retention" bonuses, ends up having to pay severance to some of the same people.

Nice work. If you can get it. :rolleyes:

[ASH]

Re: From the MSM: "fiscal restraint"

Obama Looking at $850 Billion Jolt to the Economy.

This also caught my eye:

Obama advisers, including Christina Romer and Lawrence Summers, have been contacting economists from across the political spectrum in search of advice as they assemble a spending plan that would meet Obama's goal of preserving or creating 2.5 million jobs over two years.

The figure of 2.5 million stimulus-related jobs isn't that reassuring in light of EJ's job loss predictions. They're gonna need a bigger boat!

[santafe2]

Re: From the MSM: "fiscal restraint"

The figure of 2.5 million stimulus-related jobs isn't that reassuring in light of EJ's job loss predictions. They're gonna need a bigger boat!

Not to worry, $850B is only round one. This is not grandpa's bailout. Not even a few little tiny billion like the LTCM, "it's going to bring the world finance down", bailout. This is the grand Kahuna bailout. This is the, we're writing $10,000 checks to every family of four bailout until you realize we're serious. To tie this back to your analogy, this is no boat, this is the ultra-large crude carrier of bailouts. I'll see your bailout and raise all boats.

[pksubs]

Re: From the MSM: "fiscal restraint"

Not even a few little tiny billion like the LTCM

There's something quite vulgar and even pornographic about the numbers bandied around these days concerning the bailout. One forgets what a billion dollars can buy, and how much work is required in the real economy to get turnover of a company up to a billion. Heck, even breaking even in a startup takes 4-5 years(if you're smart _and_ lucky) of toil and stress. Devaluing money like this, by creating it out of thin air, doesn't just devalue money - it devalues work and the people who do it...

[The Outback Oracle]

Re: From the MSM: "fiscal restraint"

Great observation pksubs

[Penguin]

Re: From the MSM: "fiscal restraint"

I would have never believed that AIG, an insurance company, would be given tens and dozens of Billions of dollars without much thought while the Big 3 are forced to do a pole dance for Nancy Pelosi and Harry Reid for a measly $14B.

I refuse to believe an insurance company is of more long term import to a nation's health than an auto maker. Call me old fashioned. :p

Will

[GRG55]

Re: From the MSM: "fiscal restraint"

There's something quite vulgar and even pornographic about the numbers bandied around these days concerning the bailout. One forgets what a billion dollars can buy, and how much work is required in the real economy to get turnover of a company up to a billion. Heck, even breaking even in a startup takes 4-5 years(if you're smart _and_ lucky) of toil and stress. Devaluing money like this, by creating it out of thin air, doesn't just devalue money - it devalues work and the people who do it...

With the exception of the "work" done by bankers and financiers [and the Madoffs of this world], the FIRE economy has been doing this for decades...

[santafe2]

Re: From the MSM: "fiscal restraint"

There's something quite vulgar and even pornographic about the numbers bandied around these days concerning the bailout. One forgets what a billion dollars can buy, and how much work is required in the real economy to get turnover of a company up to a billion. Heck, even breaking even in a startup takes 4-5 years(if you're smart _and_ lucky) of toil and stress. Devaluing money like this, by creating it out of thin air, doesn't just devalue money - it devalues work and the people who do it...

I read this post a few times today and decided not to respond until I could clearly state what I didn't like about it. There are several things I don't agree with, not the least of which is that a start-up gets 4-5 years to succeed. Over the last decade, I can assure you it's more like 4-5 weeks before funders are asking questions. Only your mom and dad will give you 4-5 years. If your self funded and you take 4-5 years, that's not a business, it's a hobby.

What I dislike about this post is the direct correlation of money value to person value. No person's value is controlled by the value of money unless they allow it - unless they respect the currency more than themselves.

This government is not trying to crush the average worker through inflation, it's trying to save the average worker from crushing debt.