More Interest Rate Cuts, Stocks Drop

Read this article. I challenge you to prove to me that we're not already in recession.

Recession Roundup: Stupid Economic Simulus

Word out on the street is that Bush is pushing a $145 billion economic stimulus package designed to prevent us from entering a recession. (N.B. Can we stop pretending we're not in a recession already?)

This package includes up to $800 in tax relief for income tax payers, which will be accomplished without repealing Bush's tax cuts for the rich.

Explain me this: Given our current deficit, how is this a good plan? I will remind you that the US National Debt clock currently reads:

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But where will this money come from? Will we just tack it onto our deficit? We're certainly not getting it from the wealthy--those very people who have benefited from Bush's presidency and who, in truth, bear partial responsibility for the state of the economy at the moment. Had they said, "You know? We should do our part and be taxed fairly," I don't think we'd be in as dire a situation as we are right now. (Given Bush's stupidity, no doubt we'd still be SOL but not to the tune of nearly $9.2 trillion.)

And what about the people who don't pay income tax? There's something like 50 million Americans who don't pay income tax because they do not make enough money to have to pay! They could certainly use $800 more than I could. In fact, mark my words, if I receive an $800 check from the U.S. Treasury, I will find a family who doesn't pay income tax, and I will GIVE them my check. I mean it. I know it's not going to solve the world's problems, but I'll do it for the principle. Don't these people deserve some relief, seeing as they're the people with the *real* problems: the ones who can't afford to put a tank of gas in their cars (if they even own one), the ones who can't afford the rising cost of food staples, the ones who don't have job security because they work in construction and will be the first to be laid off, the ones who have to choose between buying their children a winter coat and paying for the gas bills that heat their homes. Why should a family of four making between $25K and $40K not receive tax relief while I would?

If you have a chance to call up your Senators or Representatives about this, please do. Tell them that you support a stimulus package that looks after non-income-tax-paying individuals. These are the people being hit hardest by the recession that we are currently in. These are the individuals who have the most to lose when money is cut from social programs to pay for my $800. And if you are fortunate enough to receive a relief check, give it to someone who really needs it. While stimulating the economy, you will also be helping out someone who really needs it. Because, face it, you probably don't.

Recession Roundup

Reuters and other news agencies are reporting that central banks around the world are coming together to ease the credit crunch for overtaxed banks that are having trouble borrowing money.

WWAGD?*

This news report reminded me of another event in U.S. history--Black Thursday. You might not remember October 24, 1929, but that was the day that people started dumping their stock holdings, leading J.P. Morgan and other bankers to band together to buy up stocks and shore up the stock market. And we know how well that turned out. Just five days later, October 29, 1929, was the more famous Black Tuesday, the beginning of the Great Crash and the single most devastating financial day in the history of the New York Stock Exchange.**

What am I trying to tell you? Buy gold. I recommend Barclay's Bank Gold Shares, traded on the American Stock Exchange as "IAU."

Financial advice aside, I think it's time to get comfortable with that "r" word. Just say it.... Recession. Recession. Recession. Keep hoping it doesn't turn into that "d" word. Don't say it. Although Bush tried to claim that we're not headed for recession when he announced the mortgage freeze last week, the writing is on the wall.

What is it about Bushes that when we elect one, we end up in recession? Oh right.... Iraq.... Iraq... Iraq... Cronies... I can barely believe that, once upon a time, during the Bill Clinton years, we had, what, the smallest deficit in the history of time? And now?

A handy U.S. National Debt Clock is keeping track. As of this posting:



I'm not great with math, but is that nearly 9.2 TRILLION dollars?

Hold on to your hats, kids, 'cause things aren't going to get better any time soon.

*What would Alan Greenspan Do?
**I believe that October 19, 1987 or Black Monday might actually now be the largest stock market crash in terms of numbers, but Black Tuesday had more devastating results/fallout.