Our Socialist In Chief is out today claiming his stimulus package from last year worked. That's laughable. The stimulus hasn't done anything. Remember he said we needed the stimulus package because without it we may run up to 9% unemployment, and that would be disastrous. Well, he got his stimulus package and with all that it has done unemployment was up over 10% last month and is still well over 9%. That said, they've only spent about a third of the money. So the stimulus has not worked at all, but it really hasn't been used yet. With elections coming in the fall, get ready for that money to be spent. Don't get me wrong, it still won't produce any long term results except increased debt. Any time you give the government money you can be certain that it will be ravaged by corruption and waste. That happens 100% of the time. Additionally, the things they spend the money on are temporary and do not help businesses permanently. Giving businesses more freedom and reducing the amount of money you take from them in taxes produces stronger business and more hiring etc. etc. etc.....

But an influx of money this large will have a short term effect. We're already starting to hear some talk of big projects in construction and engineering and there will almost certainly be more of that in the months to come. Business conditions, in general, still stink. We are in the post bubble world now and the economy has big problems facing it. However, the shock of the bubble burst is pretty much over so things are better than they have been for a couple of years. Given that we are beyond the initial shock of the bubble bursting and all that money is there to be spent, it seems likely that we'll get a stimulus rally here and business conditions will improve in the short term.

Todd Kmiec

Todd Kmiec & Associates

todd@toddkmiec.com