A few weeks ago I wrote a short piece explaining that while even if you think the “Making Work Pay” tax credit of $400 is a bad idea, at least we’re saving money this time by not sending out two letters and a check to every household in America. In short: the stimulus process could’ve ... Continue reading this article…

Yesterday, the Federal Reserve purchased $7.5 billion of debt in the form of Treasuries from the government, and plans to continue buying debt for a long time to finance the government’s spending. As the government continues selling this debt, the money supply increases. In total, the Treasury may add $3 to $4 trillion dollars to ... Continue reading this article…

Many economists are citing the lack of regulation of the financial markets as one of the primary causes of the recent economic collapse. Alan Greenspan, once a believer in deregulation, blames the crisis on the financial industry’s inability to monitor itself. A pattern of financial deregulation over the past two and a half decades paved ... Continue reading this article…

We’re still waiting to hear the official proposal, but you’re bound to hear a lot of talk this week in the mainstream media about the U.S. budget, deficit, and the plan to let the “Bush tax cuts” expire. Reporters are going to use the phrase “people earning more than $250,000 a year” with respect to ... Continue reading this article…

Just a quick update this morning to point out something I think has been under-reported: President Barack Obama should be signing into law the American Recovery and Reinvestment Act today, which means that States (and Commonwealths) requested federal stimulus money have forty-five days to start spending some of that money on public works and improvements. ... Continue reading this article…

When talking about the 790 billion dollar stimulus bill currently nearing the end of its congressional marathon, it’s tempting for people to focus on the direct, short-term benefits, namely a $400 tax credit, and how such a thing won’t go very far in benefiting most people. I tend to agree, but I’m also the first ... Continue reading this article…

Today, CEOs from the largest banks receiving the first batch of funds from the Troubled Asset Relief Program (TARP), billions of dollars initially designed to loosen the credit crunch, will be visiting Washington today to be grilled by the House of Representatives’ Financial Services Committee. There is no doubt that the bankers will be asked ... Continue reading this article…

Once the stimulus bill is signed into law, states and cities will receive funding for local shovel-ready projects that may help stimulate the economy. The Stimulus Watch website has compiled all of these projects and is presenting them in a way that allows visitors to browse, search, and participate. The website contains a wiki, inviting ... Continue reading this article…

It won’t be long before the second half of the original Troubled Asset Relief Program (TARP) funds are authorized to be distributed to banks to help prop up the economy. This $350 billion, or even more, is following the first $350 billion that banks received. While the government’s public intent was for the banks to ... Continue reading this article…