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View Full Version : Obama plans to invest ~$1000B in next 2 years


gsgs
12-14-2008, 12:31 PM
14. December 2008 the reflationary programme aimed at by the future American president Barack Obama could become still more enormous than so far accepted. On investments into the infrastructure of the United States consider Obama in the coming two years up to one trillion dollar spending, were called it in media reports on weekend with reference to economic advisers of the democrat. Barack Obama did not express itself for the extent of the planned package, which is to be set as fast as possible after the taking office on 20 January into the work, yet. So far however was considered 500 to 700 billion dollar as goal size.

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Obama Advisers Consider $1 Trillion Stimulus Plan, WSJ Reports
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By Dan Hart

Dec. 13 (Bloomberg) -- President-elect Barack Obama’s economic advisers are considering a stimulus plan that may reach $1 trillion during a two-year period, the Wall Street Journal reported, citing unidentified people familiar with the process.

Lawrence Lindsey, a former adviser to President George W. Bush, is advocating as much as $800 billion to $1 trillion, while Harvard University economist Martin Feldstein has suggested at least $400 billion in one year, the newspaper said, citing the unidentified people familiar.

Neither Lindsey nor Feldstein commented to the Journal.

Advisers to Obama have said $600 billion during two years would be the minimum spent in the face of a U.S. unemployment rate that may reach 9 percent without such action, the Journal said.

BirdGuano
12-14-2008, 12:35 PM
A trillion $$ in "roads and bridges" infrastructure spending won't do a damn thing for an enconomy that is 70 percent driven by consumer spending, and does nothing to further the massive wealth transfer, via oil dollars, to the middle east.

gsgs
12-14-2008, 12:56 PM
this could be the reason, that CDS are up the last days/weeks.

If it works, fine.
If not US-debt becomes more critical...

for the government it doesn't matter if the economy and
financial situation is bad or very,very bad.

They won't be reelected in either case.

So the strategy should be to either make some improvement -
just enough to be reelected (likely), or to risk complete failure (unlikely)

default on 2013 government bonds is at ~3-4%