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Message: Stimulus Package???

Stimulus Package???

posted on Feb 02, 2009 10:13AM


From CNBC, Fox, and other media, there are some items about the $819 Billion Stimulus Package that seem a bit, well, not so stimulating. My opinion of the Package is unimportant. But, how the Market reacts is important. And, it appears the Market is reacting accordingly.

The Package is advertised as aggressive action and will get stimulus monies out quickly. However, according to the Central Budget Office (yes, the feds themselves), about $26 Billion will be released this year, 2009. Another $110 Billion will be released in 2010. About 16-17% of the total Stimulus package monies will be released in the first two years.

Tax credits, along with a check of $500 per person if qualified (if you make too much you do not get $500), amounting to about $275 billion of the Package total. Bush tried sending out checks a little while back, and the talking heads say it did help, but for only a very, very short term and amounted to less than a blip.

About $100-140 Billion (for sure $100B, talking heads argue on the other $40B as gray area) is actually allocated for infrastructure. However, the amount to be released in 2009 amounts to less than five percent of what was spent on infrastructure in all of 2008. $100B would be about 12% of the Package, and $140B would be about 17% of the total monies.

Rest of the package, $400+ Billion, constitutes Social Programs, such as Medicare/caid, etc. as well as pork barrel spending. One thing mentioned that is in the Package was $250 million going to Hollywood Producers.





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