This is the fourth and last post (for now) with regard to my thoughts on the idea of further stimulus.
At this juncture, one is led to wonder "what if more stimulus is enacted?" What may be its potential size and composition? As seen in the following video interview of Christina Romer:
http://www.cnbc.com/id/15840232?video=1170636023&play=1
her view on the matter of additional stimulus is that "We'll do whatever it takes."
I found the "We'll do whatever it takes" phrase to be very interesting. First, do we, as a nation, know "what it will take?"
Second, this "We'll do whatever it takes" phrase naturally begs the question as to what, if any, limit there may be on the size of any additional stimulus efforts. Even if there is no presumable size constraint on additional stimulus efforts from a legislative perspective, might there be constraints imposed by such things as market reaction to additional indebtedness? As well, there are many other issues, of a complex nature, that would accompany further large-scale stimulus efforts.
Perhaps the most apropos way to end this series of posts on further stimulus is to say "Stay tuned." (lol)
SPX at 878.38 as this post is written
Copyright 2009 by Ted Kavadas
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