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Bobby Jindal was right

From Reuters:

U.S. companies, consumers and communities may grow so addicted to government financial help that cutting them off could trigger another recession soon after the current one ends.

Between the U.S. Federal Reserve's trillions of dollars in lending programs, the $787 billion stimulus package and $700 billion -- and counting -- in bank bailout funds, no one can accuse officials of soft-pedaling their crisis response.

But there is increasing concern that when the flow of public money subsides -- beginning next year when much of that stimulus package is spent -- the economy still won't be strong enough to stand on its own.

"The stuttering attempts to repair the banking and lending mechanisms so far by the new administration suggests that by late 2010, the specter of a second dip into recession will be looming large," said Merrill Lynch economist Sheryl King.

And this comes on top of Warren Buffett's latest epistle to battered Berkshire Hathaway shareholders:

"In poker terms, the Treasury and the Fed have gone 'all in.' Economic medicine that was previously meted out by the cupful has recently been dispensed by the barrel.

"These once-unthinkable dosages will almost certainly bring on unwelcome aftereffects. Their precise nature is anyone's guess, though one likely consequence is an onslaught of inflation.

"Moreover, major industries have become dependent on Federal assistance, and they will be followed by cities and states bearing mind-boggling requests. Weaning these entities from the public teat will be a political challenge. They won't leave willingly."

So Bobby Jindal was dead right when he refused to accept Federal "stimulus" subsidies for Louisiana state unemployment benefits. His argument was a simple one:

"The federal money in this bill will run out in less than three years for this benefit and our businesses would then be stuck paying the bill," Jindal said. "We must be careful and thoughtful as we examine all the strings attached to the funding in this package. We cannot grow government in an unsustainable way."

If Jindal can keep Louisiana out of a so-called "double-dip recession" while the rest of the nation (especially CA and NY) falters, then he will be a popular hero and possibly the leading Presidential contender for 2012. Of course this is why Jindal is directly in the cross-hairs of the Netroots, DNC, Obama Administration, and mainstream media. He must be torn apart and destroyed at a national level right now, and continually pilloried and negatively branded for the next three years, before he has a chance to gain popularity as an effective Conservative and a potential challenge to The One.


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Comments (14)

All the strings attached...... (Below threshold)

All the strings attached....I'm with Jindal on this one. The government can keep their money. When we accept our $13 a week from social hill we will ALL be accountable for having our hand in the pot! No thanks, keep it. I'd rather have a clear conscious knowing I had nothing to do with contributing to this mess.

Bobby Jindal is usually rig... (Below threshold)

Bobby Jindal is usually right.

His only recent mistake was trying to speak from a teleprompter. If he had just walked out and winged it he would have been great--and the comparison to Obama would have been unmistakable. When he was on TV last fall talking about the impending hurricane, his machine-gun delivery of details and stats was awe inspiring.

I trust he has learned from the experience.

You guys must be una... (Below threshold)
gracecurl Author Profile Page:

You guys must be unable to recall 1993. You people were selling the same crap then about Clintons economic stimulus programs. All fear and warning and hair pulling. Not one GOP representative voted for it. It lead to one of the greatest economic revivals in decades.

You guys think you can fck up the country for 8 years and then expect it to repair itself. All ideas the right have had were tested in the 8 Bush years. THEY ALL FAILED. You are living in a world that no longer exists. Your ideas are like 8 track tapes.

gracecurl,WTF??? ... (Below threshold)


WTF??? Clinton's "stimulus" -- a bargain at $496 billion compared to the $2 trillion+ that has has been pumped out by today's Democrats -- was defeated thanks in part to a Senate filibuster led by Bob Dole. The mild 1991 - 1992 recession was over by the time Clinton was sworn in, and his pork barrel stimulus was totally unnecessary. Of course that didn't stop him from raising income taxes across the board later that year.

The real boom of the 1990's didn't start until 1997, which coincidentally was when Republican sponsored capital gains tax cuts and welfare reforms went into effect. Clinton had to be dragged to the table kicking and screaming to sign both of those proposals.

I don't think I'm the one living in fantasy land.

I should also note that Bar... (Below threshold)

I should also note that Barack Obama's economic policies have now successfully pushed the Dow Jones Industrial Average back to 1997 levels, thus eradicating all the economic growth spawned during the Clinton and Bush years.

Jindal for President? Not w... (Below threshold)

Jindal for President? Not without some policy changes or some incredible triangulation. There is no way in hell that this country is going to elect a Creationist.

"I should also note that... (Below threshold)

"I should also note that Barack Obama's economic policies have now successfully pushed the Dow Jones Industrial Average back to 1997 levels"

Mike, the guy's been president for 5 weeks, he didn't create this mess, give him a chance to prove he can fix it. Sheesh.

As for Jindal, he seems like an OK guy, although as a liberal, I don't see eye to eye with him on most issues.

I would like to point out one thing. I remember in the campaign when you guys were mocking President Obama for going by "Barry" in his earlier years to try and fit in better at school.

Did you know that Piyush "Bobby" Jindal took his name from the Brady Bunch character he most identified with? No bullshit. Look it up.

"Mike, the guy's been presi... (Below threshold)

"Mike, the guy's been president for 5 weeks, he didn't create this mess, give him a chance to prove he can fix it. Sheesh."

How long? You set the timetable.

When will you decide that Obama's policies have failed, and based on what criteria?

JB, I don't know. Republic... (Below threshold)

JB, I don't know. Republicans crowed about Dubya being president for 8 months before 9/11, and Clinton being president for 8 years.

I would say give the man at least a year to shift economic trends from the undersight (no-sight?) of the Dubya administration back to normalcy. I don't think that is unfair in the least.

I will set the timetable. Give the man one year to get the economy back on track. He will do it, and he already is.

OK, Ryan, a year it is. Fai... (Below threshold)

OK, Ryan, a year it is. Fair enough. March 2010.

Now, what criteria...unemployment rate, inflation, the DOW, productivity?

None of this "saved or created jobs" hogwash.

My basic take is that if we were to have an Obama "recovery" it would be a highly political one, timed for elections, with the final bill of hyperinflation and massive debt maintenance coming later.

But all that aside, let's see if he can stop the job losses by spring of 2010.

Jindal also pointed out the... (Below threshold)

Jindal also pointed out the very reason Louisiana might suffer in the long run with some of the federal monies allotted to pay for an extension of unemployment benefits. If they accept it, it comes with the requirement that the Louisiana legislature permanently change their unemployment laws which could conceivably put more burden on the state after fed dollars run out.

You ever see signs for 'fre... (Below threshold)

You ever see signs for 'free kittens'?

Any pet owner knows there's no such thing. You get a cat, you're also going to have to take that cat to the vet on a regular basis, buy it food, set up and maintain a litterbox to deal with the piss and shit it generates.

Yeah, the cat was free. Nothing ELSE connected to it is. Once you take on the obligation of the 'free kitten', you're stuck until the beast dies.

So the government is offering free kittens to the states. They're so cute! They're so cuddly! How could you NOT want to take SEVERAL home? They're FREE!

For now...

Later? Not so much...

I'm very optimistic about w... (Below threshold)

I'm very optimistic about what Jindal can accomplish in Louisiana. He has all the right ideas and enjoys incredible popularity.

>"Mike, the guy's been pres... (Below threshold)

>"Mike, the guy's been president for 5 weeks, he didn't create this mess, give him a chance to prove he can fix it. Sheesh."

The market doesn't start plummeting when somebody takes the oath of office. Market performance is based on future events, which can only be guessed at based on things like polls (which showed Obama was almost inevitably going to be elected way before the actual election), public statements (like those of Obama and his pals, talking about raising taxes on the "rich" and punishing "greedy Wall Street"), and on past performance (we all know where a Democratic supermajority and chief executive would go with fiscal policy).

It is hard to avoid the conclusion that the market tanked because everybody knew Obama and the Dems would be elected, and that once there they would destroy the economy.

And that's only on top of the Fannie/Freddie mess that Barney Frank and Chris Dodd allowed to fester.

Don't give me the excuse that President Amateur-Hour has only been in office for x months. That's thin.

I know why I'm not investing now. Hint: it's about potential earnings vs. risk.






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