Recession Street USA - Strong Medicine For A Big Problem
Yesterday in this post about the economic recession [also see here], we wrote that U.S. President-elect Barack Obama and others will soon stop talking about implementing a "mere" $500-$600 million economic stimulus package when he takes office on January 20, 2009, and start talking about an economic stimulus package of about $1 trillion.
But we didn't think soon would actually mean just 24 hours after we wrote and published the post. But then that's "recession time" for you -- in such severe economic downturns everything seems to move faster, with the exception of the upward trend of the economy.
Today President-elect Obama, anxious to jolt the economy back to life, said he is considering a federal stimulus package that could reach a whopping $1 trillion, dwarfing last spring's tax rebates and rivaling drastic government actions in the 1930's to fight the great depression.
The latest figure "Team Obama" is considering appears to be about $850 million. However, since it was about $600 million just a day or two ago (remember we are on "recession time"), it could easily go from $850 million to $1 trillion between now and January 20, when President-elect Obama is sworn-in as the 44th President of the United States, particularly if the December unemployment figures, which come out in early January, 2009, are as bad as most think they will be.
We suggest you read the just breaking story from the Associated Press at the link below:
Obama looking at $850 billion jolt to the economy