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Strategies & Market Trends : Humble1 and Swing Trading Friends -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (8675)	8/12/2012 10:17:39 AM
From: zman69	Read Replies (1) \| Respond to of 41447

Speaking economically not politically, I am a Keynesian, so I believe the time for curtailing spending is when the economy is booming not when the economy is nearly at stall speed. Using that metric, now is actually the time for more govt. stimulus, since the economy is tepid and private sector is still deleveraging. The low interest rates you mentioned are actually a very strong argument for more govt. spending on infrastructure projects as they will produce a positive return on investment well into the future. Once the private sector has finished deleveraging and the economy is in a self sustaining recovery THEN we can worry about cutting govt. spending but not now. Our #1 priority now should be to get the economy to escape velocity via additional stimulus from both the Fed and govt. Remember if both the government and the private sector try to deleverage at the same time the result will be a Europe style depression and massive double digit unemployment, which would not be a happy result for the stock market. Just to be clear this is not a political argument, it is purely an economic one. The link below is a good primer on the case for infrastructure spending in the US... bonddad.blogspot.com Best Regards, -Zman