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Wall Street Breakfast: Must-Know News

And to make everybody feel better about the future and the benefits of the 787 billion stimulus bill the AP reports this bit of news


WASHINGTON — A top White House economist says spending from the $787 billion economic stimulus has already had its biggest impact on economic growth and will likely not contribute to significant expansion next year.

Christina Romer, the chair of President Barack Obama's Council of Economic Advisers, said Thursday that the $194 billion already spent gave a jolt to the economy that contributed to growth in the second and third quarters of the year. She told a congressional panel that by the middle of next year, the impact of the stimulus will level off. Romer said spending so far has saved or created 600,000 to 1.5 million jobs but warned that unemployment will remain high, above 9.5 percent, through the end of 2010.

On the Spectacular Earnings Season

Jeff appreciate your sharing your thoughts about perspective, looking back as well as looking forward concerning earnings, etc. Today we have analysts saying things such as " based on historical whatever (PE, Earnings, PB etc) they make projections on companies going forward as if its business as usual. I wonder do they discount the recent past five years of these metrics because they were a result of a bubble and not a product real demand but just cheap easy money.In your article you do not address this matter of discounting unusual past history as it relates to stock analysis as well as taking into consideration the so called new normal going forward. It would seem logical for analyst to take these into consideration my question is are they when they