Economic Stimulus Package: Let Them Eat Cake

| About: Financial Select (XLF)

This economic stimulus package has degenerated into an utter fiasco of political wrangling, classism, and socio economic warfare that has broken down amidst typical Beltway gridlock. All constituents are descending upon Washington, hat-in-hand in search of bailout money.

Although the stimulus package has ballooned from the $300 billion post Obama election estimate to well over $900 billion as the legislation stalls in the Senate – few are happy with the measure. Republicans have united in formation to slam the bill as an irresponsible pork barrel spending bonanza; Democrats retaliate by ridiculing the G.O.P as misguided Bush disciples; and Main Street’s broken Joe Six Pack is left to decipher this charged environment pitting big wig versus big wig amidst a $1 Trillion money grab death match.

Let them eat cake.

The haughty sentiment pervading the corridors of Washington, mindsets of Wall Street denizens, and the brewing outrage of Middle America parallels that of Marie Antoinette suggesting that starving peasants “feast” upon pastries within the trash strewn, vermin infested Parisian streets.

Whereas various constituents are eager to play the unfortunate, dismissed beggar role - all opposition is ridiculed as a mere nuisance that is to be appeased and patronized with insignificant, trifling measures. This cake is delicious, but Americans will remain tormented by long lasting hunger pangs:

  • Proposal: $500,000 cap on bailed out executive salary.
  • Proposal: $18.5 billion homebuyer tax credit.
  • Proposal: $275 billion in tax cuts.
  • Amendment: $11 billion tax break for new car and truck buyers.
  • Amendment: $6 billion increase for medical research at N.I.H.

This bailout has morphed into a paper monster of legislation and of course, U.S. Treasury printing press cash to appease various disparate groups. Conservative Republicans clanging the tax cut / supply side economics bell have railed against staunch liberals boisterously presenting their universal health care / alternative energy / spread the wealth calling card. Both parties are threatening to torpedo this package with such idealist rhetoric. Ironically, Abraham Lincoln, hero to Barack Obama has already declared:

You cannot please everybody all the time.

I fear that this perpetual Whack-a-Mole Game attempt to please all parties will exacerbate an already disastrous debt binge of taxpayer money. Certainly, numerous groups lobbying Pennsylvania Avenue with tremendously noble intent must concede short-term defeat for the betterment of this Nation. Although these machinations will arrive with sharp disappointment – I must advocate for the immediate injection of equity capital into the United States of America that is to be efficiently utilized at this very moment – rather than several years into the future.

Unbridled, free market capitalism teetered upon the brink of collapse a few short months ago paralleling the outright seizure of commercial credit. The banking system must be stabilized immediately and infrastructure spending that will put our citizenry to work tomorrow takes precedence over any idealist reform scheme. Sacrifice is in order until Washington may legislate out of strength, rather than reactionary weakness that panders to populism.

The Federal Government’s bailout rescue cape lay in tatters.

Let us all eat cake.

Stock position: None.