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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (35739)	6/5/2009 8:03:26 AM
From: DuckTapeSunroof	Read Replies (1) \| Respond to of 71588

Re: "No single thing has to be in the trillion dollar range...." I have long pointed out that the Federal Reserve's quantitative easing --- well over 1.5 Trillion dollars already --- is materially larger then the amount of fiscal 'stimulus' spending (& tax cuts... about 40% of the figure) that the Obama administration passed through Congress this Spring, which was more like 1/2 a Trillion. Let us not forget, either, that the Bush administration bailout funds to the banking and financial services industry --- well more then 1/2 Trillion itself --- was already entrained, already a factor in the economic environment, too. However, aside from the absolute magnitude of spending/tax-cutting/liquidity-boosting measures, there are psychological impacts which are important too... how the markets and the public assess the actions that are being taken in crisis mitigation, all the attempts to 'plug the drain' and 'reset' economic conditions to a more normal, pre-crisis, pre-panic environment. (Markets move on perceptions of the future....) And there --- with regard to the 'market's answer', the best we have to go on is the actual PRICE and VOLUME ACTION in the markets. Which, (coincidentally or not), launched like a rocket once the Stimulus Bill was passed and the markets became certain that they could count on that funding (and lower taxes) rolling out over the next two years or so....