9 Trillion Dollar Economic Expansion Act
If you accept the fact that spending on WWII was the biggest factor that pulled the economy out of the 1929 + Depression you had better start thinking bigger in terms of what it will take now. Obama needs to start thinking in reality mode. Forget getting the Republicans on board for anything, just blow by them. It is to Obama’s credit that he is trying to put together a cabinet along bi-partisan lines, but there should be no-wavering on what it is going to take to get the job done. In today’s dollars, 9 Trillion is what it would take to get the kind of expansion that WWII provided.
So Obama, get your plans together, a number of bills will be needed which can come under the heading of 2011 Expansion Act. There should be separate bills for 1) Peoples Aid Act (Health and unemployment issues; 2) US Infrastructure Act (roads etc); 3) Green Energy Act; 4) Bank Credit Act (buy up weak banks); and probably more. In any case make it clear to the people and start allocating a three year plan.
As to the markets, they are at a crossroad, if Washington gets serious on dealing with the big issues we will head higher quickly. However, Gold is creeping back up today and the S&P 500 is back down in the low 800’s again. That is an indication that Washington gridlock is getting stronger and that is not good for the market.
Yesterdays EMA ETF Fund NAV was 983.
8:19 AM CST