NEWS

The Grand Bailout- Part 2

February 12, 2009
Blokesablogin

The Senate and Congress haggled while Mr. President went public, spurring support for his Stimulus Bill. Mr. Bush's TARP has yet to be accounted for and we have gone ahead and approved yet another colossal spending bill. In Tamil we say- jaan pona enna muzham pona enna- meaning once you lost a foot who cares if you lost a yard? Right now in America we pass bills to pay bills with printed bills! Now here is a wonderful way to teach children homonyms.

What is interesting to me, being in California, is that our state budget also is on the floor of the house. Unlike Mr. President's gentle but firm arm wrestling tactics, using his powerful oratory skills, Mr. Governor is unable to budge the folks in Sacramento with his real muscle power! He threatened them with no pay if they did not approve the state budget by this week and they are still out until this Friday.

Mr. President will give us some money back, and if I went to college, some tax credit. Being a 1.2 income family, we certainly fall within the eligibility of being "middle class", as defined by the President.

Sacramento will take away my check from the President as we will pay 1% more sales tax and a 5% surcharge on personal income tax. DMV fees will double and gas will go up by 12 cents/ gal. The irony cannot be missed. The democrats in DC are lowering taxes while the republicans here are raising them!

While the local drama continues, the national drama has been sealed and delivered for Mr. president to sign. He is thrilled that this Stimulus Bill is ready by Lincoln's B-day, today.

The State should get some relief from DC. The rise in taxes here will wipe out the tax relief check we will get from the President. Oh well, life continues...

Blokes aka Meenakshi enjoys writing along with being a mom, a school teacher, a musician and an Art of Living teacher (of meditation and breathing)
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#1
saraswati
February 13, 2009
10:15 AM

daanikku deeni sari poyindi!! wisdom of the ages will stand us all in good stead. Nothing happening now that hasn't happened in some form in the past. Let us pray for strength of body and mind to see through this too as this will pass too.

#2
Kerty
February 13, 2009
10:43 AM

It's funny that just about when people are about to get tax rebate checks, somebody pounces on it to rob it away from people - oil companies, utility companies are the usual suspects - they adjust prices according to what market can bear, and any time additional cash arrives in the kitty of people, they pounce on it to grab it before anybody else can grab it. But last time, my county got to it before oil and utility companies could get to it. When I got $1200 tax rebate check and my county raised my property tax by $1200 - so the rebate check went straight the county coffers. Companies advertised all sort of special deals to get their piece of that pie, but local government took it all, beating out the oil companies, who is usually the first to grab it all. I thought I had a choice what to do with that extra money and how to spend it. But I guess not. Next time, why don't federal government give the money directly to these needy greedy companies, rather than bothering us tax payers?

#3
Guido
February 13, 2009
10:51 AM

"The democrats in DC are lowering taxes while the republicans here are raising them!"

I'd like to read your source for that statement.

The Senate Dems and three RINOs just passed the largest spending bill in the history of mankind. Who do you think is going to pay for that? If you guessed us, via more taxes, give yourself a cigar.

The Republicans and a few blue-dog Dems in the House were screaming that the spending (among other things) will create a huge tax burden, not just on the current generation, but two more down the road.

Over spending by both parties is partly to blame for the mess in the first place. Further culpability, and the catalyst for the debacle lies at the feet of the House Finance Committee Chairman, Barney Frank.

So while Schwarzenegger has no choice but to cut programs, the Dems and Obama just borrowed our future away on a bill the majority of Americans and economists have no confidence in. Californians should be thankful to have a state leader who's trying against all odds to be fiscally responsible.

Finally, most Democrats are traditionally notorious for increasing social programs and taxes, while conservative Republicans lean in exactly the opposite direction. That is, or was at the heart of the stimulus bill debate.

Ciao, Guido

#4
Slime_id
February 14, 2009
11:07 AM

Bailed-out US firms cannot hire people with H1-B visa
http://www.ndtv.com/convergence/ndtv/story.aspx?id=NEWEN20090083552

Is this not US protectionist attitude?

#5
smallsquirrel
February 14, 2009
01:18 PM

uh, slime, seriously... when a country is in a recession, it absolutely owes it to the citizens of its country FIRST to provide jobs. you cannot honestly criticize the US for this stance, as we are in little position to promise work to people from other countries when we cannot feed US citizens. that is just common sense. if it were India, you would argue similarly.

#6
Kerty
February 14, 2009
02:57 PM

If all other countries begin reacting to recession by protecting their own industries and jobs, the global markets will shrink dramatically, deepening the recession even more. So its a similar trap when people stop spending due to recession, but lack of spending shrink the business pie resulting in deepening of recession. To preempt or get out of it recession, as Bush used to exhort, people need to spend more. Similarly, global markets need to be expanded, not shrunk, in order to grow out of recession. To paraphrase Obama's words, you can not keep doing stupid things and expect wise results.

#7
Slime_id
February 14, 2009
03:00 PM

SS, thanks

I must know US was not an immigrant Jewish state anymore to support it. OOps I asked whether US also was protectionist like India very rarely is.

Please advise whether we need to create H1B visas for US citizens to work in India. We are true supporters of US legacy!

#8
shanky
February 14, 2009
08:52 PM

no two economists will ever agree. the diferrence between the previous recession of 1929 was then the savings rate dipped to negative and spending went up to help demand grow. this time around savings rate was already negative going into the recession so there is no leg room there for the masses to spend and create demand. secondly the continuing stream of immigrants in the 30's40's kept demanding more and more services and assets as they entered the country. the solution is obvious - first - more immigrants but this time people who can qualify are those who can buy a house with at least 50% equity and second - complete the legalisation of all illegals in the country so that they are counted in the GDP and hence taxes etc etc

#9
kerty
February 15, 2009
02:03 PM

Obama's Rhetoric Is the Real 'Catastrophe'
By BRADLEY R. SCHILLER

"This fear-mongering may be good politics, but it is bad history and bad economics. It is bad history because our current economic woes don't come close to those of the 1930s. At worst, a comparison to the 1981-82 recession might be appropriate"

"Mr. Obama's analogies to the Great Depression are not only historically inaccurate, they're also dangerous. Repeated warnings from the White House about a coming economic apocalypse aren't likely to raise consumer and investor expectations for the future. In fact, they have contributed to the continuing decline in consumer confidence that is restraining a spending pickup. Beyond that, fearmongering can trigger a political stampede to embrace a "recovery" package that delivers a lot less than it promises. A more cool-headed assessment of the economy's woes might produce better policies."

Read Full article
http://online.wsj.com/article/SB123457303244386495.html

#10
Kerty
February 18, 2009
11:04 AM

India's slumdogs to bailout the Indian economy

The Boom From The Bottom
Bare Necessities: While the affluent cut back, lower-income people are still spending
By Jason Overdorf | NEWSWEEK
Published Feb 14, 2009

"The idea that Indian backwardness is a plus may sound absurd. But it is always easier to grow from a poor base, so the fact that India is not yet a major economy is an advantage in a downturn. Such a large population subsisting at so low an economic base is a powerful economic driver if it can be mobilized--and for India this group is proving resilient to the prevailing headwinds in the global economy"


Read full article
http://www.newsweek.com/id/184621

#11
kerty
February 18, 2009
11:10 AM

The con side of the rosy picture in India. Here is what happens when India apes Obama Blindly.

Indian Stocks, Bonds, Rupee Drop on Record Government Borrowing
By Anil Varma and Pooja Thakur

Feb. 17 (Bloomberg) -- India's stocks, bonds and currency fell on concern record government borrowing to fund economic stimulus will backfire by driving up borrowing costs for businesses and consumers.

http://www.bloomberg.com/apps/news?pid=20601110&sid=at_yFeOWo5Y4

#12
Slime_id
February 21, 2009
09:14 AM

Adding on #7 and #4,
India Inc and Govt vow to oppose the US 'protectionism'.

http://edition.cnn.com/2009/WORLD/asiapcf/02/20/india.us.protectionism/index.html?iref=24hours

wow, the nuclear deal done, Italian led India gets back to oppose US theme and US banking system in disarray, it mustered courage to say it will oppose US. It is pure election dharama ?

Thanks Mrs. Clinton for not visting this joker Pranab Mukerjee. India must be visted after new government takes over after elections.

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