recovery package
I'm still waiting to find out the details of the conference agreement on the recovery package, but I'm cautiously optimistic. I don't think it's going to be a magic wand, but it will be a big step forwards. I won't really relax until it clears the Senate, but what I'm hearing sounds like they made some reasonable choices.
MomsRising sent out an alert to their members on the recovery package, and asked for reports "if you or a family member have lost a job, a house, healthcare, or sleep because of the recession." Here are some of the responses they've gotten. It kills me to read them. It's scary out there.
February 12th, 2009 at 1:09 pm
I know a lot of people out of work for over a year and the stories are difficult to read. Sorry if this is off topic; I pretty much had to shut down listening to any talk radio, cable news, even NPR (liberal or conservative)regarding the recovery package. It just enrages me that the same conservatives against spending on a recovery package would be okay putting us in debt to rebuild Iraq. I regret what Bush did (I did not vote for him ever), but I would much rather go in debt to help rebuild the U.S.
It is really evident that the global world is in a period of historical transition (more technological, economically and environmental) and I wish Obama would listen to some brilliant philosopher/historian rather than an economist. It is always difficult to deal with transitions, but people adapt. It is catastrophic when government refuses to change, i.e. Republicans.
February 12th, 2009 at 4:08 pm
because obama has been getting so much flak for being too aggressive/not doing enough, i looked up W’s progress at about this point in his first term. he was pushing for 1.6 trillion in tax cuts, mostly benefitting the richest. there were worries at that time about the looming budget SURPLUS, if you can believe it. W sure took care of that, what with deregulation and some wars and his tax cuts and “everything’s fine, go buy stuff!”
i think the recovery compromise is at least a big step in the right direction. and damned if we aren’t in really big trouble. those stories on momsrising are just a tiny fraction of the problems.
February 13th, 2009 at 12:18 am
“everything’s fine, go buy stuff!”
Meanwhile, the currently fashionable approach is to say that the sky is falling, and we all need to get out there and buy RVs. I’m not really seeing the difference.
February 13th, 2009 at 1:19 am
well, i’m not buying anything. ‘course, that’s partly because i’m not going to be paid anytime soon because my state is broke and decided to stop paying bills; and i can’t borrow against the house because our line of credit just disappeared today. not our fault, we’re great customers, but they just closed it.
February 16th, 2009 at 10:31 pm
As of next week I’m unemployed, but thanks to the magic of reason, Excel, and a basement full of food, am not freaked. I’m not entirely sure how I pulled this off, but so long as I don’t do anything dumb or start shopping like it’s 1999, I’m good till May 2010 w/o disturbing savings much. After that I’m in trouble.
One thing that hasn’t been mentioned in the rush to start squeezing money out the door is the fact that a tremendous number of people are self-employed, and the unemployment/COBRA extensions will do zip for us, because we don’t have unemployment insurance. A good many self-employed are self-employed because some circumstance in their lives doesn’t allow for normal out-of-home fulltime employment — they’re single parents, they’re caregivers to spouses/children/parents, they’ve been hit with years of age discrimination when applying for jobs, they have some disability which doesn’t preclude employment completely, so rather than fight with SSA they’ve gone ahead and made a living at home. Sometimes with assistive-tech help from states. So on the whole you’re looking at a rather vulnerable crew there.
We also run into trouble if we try to tap retirement accounts, since IRS allows for premature withdrawals if you can show you were on unemployment for 12 weeks. Well, if you’re not eligible for unemployment, you can’t meet that standard, and as far as I know, you’ll get hit with the penalty.
Maybe when/if some of the hysteria dies down this’ll be addressed.
In the meantime, though, I think we’re setting ourselves up for more serious trouble down the line. I don’t think the stimulus package will do the intended job, but we will be left with the extra money in the system. We’ll also have people coming back to the well for more. How this isn’t going to cause some substantial inflation I have trouble understanding.
I’m still getting credit up the wazoo, btw. One card just raised my limit, and I’m in the midst of a refi. It’s a very nice time to miss a month’s mortgage payment and get an escrow check. What this says to me is that FICO is still all-powerful, and that strikes me as a very real problem.
February 17th, 2009 at 11:45 am
amy,
You’re very resourceful and forward-thinking. I think you are going to do really well.
February 23rd, 2009 at 6:52 pm
“Christmas is the time when kids tell Santa what they want and adults pay for it.
Deficits are when adults tell government what they want and their kids pay for it.”
Richard Lamm, Governor of Colorado, 1975-1987