100 Million – 150 Million. Check out this video I came across. With the new stimulus package approved and checks currently being written it’s fun to see some of the stuff that’s actually in the Bill. Stay tuned for President Obama’s announcement of his additional housing recovery plan. He is in Phoenix today, one of the foreclosure capitals of the country, to announce the highlights of the plan…
Last week one of my readers asked a few questions regarding my thoughts on the stimulus package and the economy in its state following my post “Possibilities Of Another Stimulus Package”. I enjoy the interaction and questions and thought it to be prudent to post the reply:
Reader:
Do you really think that another stimulus package would boost our economy? Did the first one have that much of an impact? Would measures to improve access to credit boost the economy, but leave us right back how we got here, giving loans and money to people who couldn’t sustain payments? Just questions, I guess, no solutions, but I’m curious about your thoughts.
My response:
Ryan, Thanks for your inquiry! My thoughts about the stimulus package are all over the board. Of course, I would enjoy an extra check from the government, especially since my 9 month old twins weren’t born last time the government issued the stimulus checks! With several friends and family members owning small business in Salem where I live, I definitely say an additional stimulus check may positively impact their businesses.
Personally I think the first stimulus package was much like drinking a cup of espresso in the morning. The stimulus checks put cash in the pockets of consumers and it helped boost consumer spending for a short time, but as soon as the buzz was worked off consumer spending returned to the slow and groggy pace – not to mention the debt the federal government accrued. The short term benefit is obvious, however, the long term benefit has yet to be determined.
To answer your question regarding access to credit: The term “access to credit” is referring to the government taking action to boost capital for banks to lend to consumers. The lenient underwriting practices that lead to this financial crisis has faded and will likely never return. Banks have returned to the traditional underwriting guidelines that actually require people to be educated about their personal finances. The Federal Reserve is already infusing banks with capital as a part of the “rescue plan” and it seems to be meeting the expectations set forth.
It comes down to the fact that education is a tool that cannot be over looked for people looking for financing. For those seeking financing for homes, school, cars, etc., it is important to seek advice from a trusted resource.
My response:
Ryan, Thanks for your inquiry! My thoughts about the stimulus package are all over the board. Of course, I would enjoy an extra check from the government, especially since my 9 month old twins weren’t born last time the government issued the stimulus checks! With several friends and family members owning small business in Salem where I live, I definitely say an additional stimulus check may positively impact their businesses.
Personally I think the first stimulus package was much like drinking a cup of espresso in the morning. The stimulus checks put cash in the pockets of consumers and it helped boost consumer spending for a short time, but as soon as the buzz was worked off consumer spending returned to the slow and groggy pace – not to mention the debt the federal government accrued. The short term benefit is obvious, however, the long term benefit has yet to be determined.
To answer your question regarding access to credit: The term “access to credit” is referring to the government taking action to boost capital for banks to lend to consumers. The lenient underwriting practices that lead to this financial crisis has faded and will likely never return. Banks have returned to the traditional underwriting guidelines that actually require people to be educated about their personal finances. The Federal Reserve is already infusing banks with capital as a part of the “rescue plan” and it seems to be meeting the expectations set forth.
It comes down to the fact that education is a tool that cannot be over looked for people looking for financing. For those seeking financing for homes, school, cars, etc., it is important to seek advice from a trusted resource.
Thanks again for your inquiry! Have a great week.