No matter your political party affiliation, one should be concerned about the so-called stimulus bill making its way through Congress. Nearly half of this bill is earmarks (i.e., pork).
The Political Calculations website has a breakdown of the spending bill in a brief article titled: "Where the Stimulus Money Is Going."
The article contains the following chart:
click to enlarge
The seemingly "panic" efforts by the White House to pass this bill are representative of their lack of understanding of the factors that are causing this economic crisis. Todd Sullivan has a brief comment that addresses the mark to market accounting issue in an article titled: "'Davidson:' Panic at the White House."
On one hand, I believe the market price is what it is, while on the other hand, the dysfunctional market for some credit investments leads one to price investments far below market value even though all payments are being received. Is it as simple as a revision to the mark to market accounting rules that could ease the credit markets?
