Wednesday, February 18, 2009

Summer's Coming America


Wall Street didn't get the message that we are in recovery. Despite President Obama's signing of the Stimulus bill yesterday, stocks continued to tumble and word is that the global recession is still in effect and may just have to run its course.

Apparently, investors around the world still do not have any faith just yet that America is back in business again. Probably, because it's not. Ailing banks, nearly bankrupt auto makers, tumbling home prices/values, and broke desperate individuals (like myself) who are watching every dollar and not so apt to spend anything right now are the reasons why they don't have faith and the reasons why, stimulus bill or not, nothing is going to change just yet.

General Motors and Chrysler had the nerve to ask for another bailout. General Motors says it needs $16.6 billion more in taxpayer money to survive. Chrysler is requesting an additional $5 billion and says it will cut 3,000 more jobs. (What did they do with the money they were already given?) As I said, we are still in a recession and there might not be any signs of a light at the end of this tunnel until the middle of the summer.

One thing economists fear is rapid deflation or falling prices. On the surface, falling prices look good for you and I but, if they continue to fall, that leads to lower wages due to lower profits and companies will wind up slashing their capital investments, which ultimately leads to more layoffs and brings us right back to where we started.

The positives about yesterday's Stimulus bill are tax breaks for families that send a child to college, possibly $13.00 more in your paycheck starting in June, couples will receive $800.00 back in their income tax returns, a $1,000 a child tax credit for low income families, and an $8,000 tax credit for first time homeowners.

If you have lost your job and subsequently lost your healthcare too, it will now be cheaper to hold on to that coverage while you're looking for your next gig.

For the first time in years, that pothole on a stretch of bad highway or road that broke your axle or realigned your car for you will be repaved. The steel on that bridge will be reinforced, and a new school might be built right over that bridge for your children to go to. If your kid is going to college, you or your child will be eligible for up to $2,500 to help pay tuition and related expenses in the fall of 2009 and spring of 2010.

Finally, all green things like energy efficient windows, furnaces, etc. will make you eligible for a 30% tax credit towards the cost of the materials.

Good stuff, huh? Well, here is the bad. The National Debt will still be high... over a trillion dollars. Like it or not, your children and grandchildren will be footing the cost of the Stimulus bill regardless of whether it jumpstarts the American economy or not. The saddest thing of all is that America, who used to lend everybody money, will now be forced to borrow money from China and other countries.

This recession is like war... easy to get into and hard as hell to get out of... and our futures will continue to tumble like tumbling dice within it. It's still winter in America but, buck up... summer's coming. Ronald Reagan told me so.

23 comments:

Jazzy said...

Oh did he? lolol

James Perkins said...

Good Stuff Keith!

Toni said...

I'm up late tonight...Wow, your last two posts have really been hittin it.

Angie B. said...

You're the CNN of the blogosphere man!

Simon Bastion said...

A good post, but very little humor in this one...I suppose there is very little to laugh about. A very dire situation.

Political Sean said...

Good Post Brother Keith...You're definitely on it bruh!

clnmike said...

Good post, I did something similiar, the key to this is spending people got to spend that money.

Lisa said...

So Ronald Reagon told you everything was going to be alright huh? I hope so. It sure doesn't seem like it.

Halo said...

Very informative...Thanks to you and The Field Negro and Raw Dog Buffalo, I have a deeper understanding of what's going on with this.. I've learned more in the blogosphere than I have watching the news or reading the papers.

Vanessa said...

You still bangin over here Keith,keep on educating the people!
lololol.

Sunflower said...

You never cease to amaze me brother
with your insights!Keep up the great work.

Grover Tha Playboy said...

I was reading your post early this morning and listening to the O'Jays
"Money, Money,Money,Money...Monnney.."
That seems almost like an omen or somethin,doesn't it?

Swaggie said...

I love these last two posts you've done..they've really educated me about something I here to for was kind of confused about.

Tate2 said...

That extra $13.00 in my paycheck and those tax releifs for school
sound pretty good to me right now.
I can't see how things like this can be anything but good. I'm just worried about the job creation..Will that be real jobs or just a bandage.?

Captain Jack said...

You talked with Reagon?? I hope he's doing well...lolololololol.

Thoughts of a Southern gal said...

I agree Halo. I don't read Raw Dawg but love me some Keith and The Field Negro.

Torrance Stephens - All-Mi-T said...

OFF TOPIC - welcome 2 the blog roll

its creditCrack’s evil twin

Keith said...

@Torrance- Thanks Folk!

@Southern Girl- Love ya Back!

@ClnMike - Loved your take on this!
'make it rain"--lololol.

Shorty said...

I love your posts! Not that I ever doubted it, but you're truly just one smart dude. I like the way you think. Most of the time. : )

Hope you're having a great week!

Mizrepresent said...

Great stuff Keith...i was just talking with my brother how we got to hang on as best we can...it won't be easy, and far from over...but i have the audicity to have HOPE!

LadyLee said...

Good assessment... Very good.

I do think it's going to take a while for everything to kick in. But the sad part is that we will be accountable to those who lend us money. We are no longer world leaders...

Again, good post.

Go B. said...

AHHH...I did a youtube video about this last night. Now if I can just get it uploaded to youtube it'll be okay..lol

Go.

Oyin said...

hey thanks for the bruh




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