Sunday, February 1, 2009

The Super Bowl "stimulus" plan

A great game, and another victory for Obama, (whose favorite team after the Bears is the Steelers) and also for those who bet on the Cards because they covered the point spread.

The Super Bowl is still really an "American" event, so the next time, you hear all the Wall Street con artists telling you that we can't exclude foreigners from participating in our stimulus bill for our economy that you the taxpayer is paying for, tell them to take a hike.

Look at the latest on the Stimulus bill:

There is little doubt that if the Buy American provisions of the Economic Stimulus Package were to become law, this would amount to an economic declaration of war on the rest of the world. The response of the assembled non-US finance ministers in Davos made this clear. Retaliation from the EU countries and the rest of the world would follow swiftly.

Bernake and Treasury have already bailed out the foreign banks, even though there still is another shoe to drop. The Super Bowl didn't even stimulate the Tampa economy as it should of this year.

So now the folks in Davos are recommending that we shouldn't have a stimulus bill that doesn't have a "Buy American" component to it?

What did the people in Davos say about America last year?

"if everyone tries to consume the way America has consumed, the world is not viable."

What did the people in Davos say about the financial health of the banks last year?

"It's not mistrust that other institutions will go bankrupt," said Walter B. Kielholz, Chairman of the Board of Directors at Credit Suisse, "It's mistrust that if I lend to them they may not lend to me, so I'll keep my money. And that was something that I in my career had never seen before".

What did the people in Davos say about economic decoupling last year?

"When the US catches a cold, maybe the rest of the world catches a sniffle, but certainly not pneumonia."

What did the people in Davos say about the Soverign wealth funds last year?

Swollen with revenues from oil, electronics and public savings, sovereign wealth funds have become the latest global financial force, sparking concern that they may have more than profits in mind as they buy up strategic assets in developed countries.

If high oil prices continue to channel surplus funds into the coffers of the major exporting countries, sovereign investments could reach US$ 15 trillion within the next five years. This growth will inevitably make SWFs major players in the global capital markets.

So why should we listen to the folks in Davos who say we shouldn't have a "Buy American" component in our stimulus bill? What were they right on last year?

Bet against them in Davos.

I like those odds!

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