Wednesday, March 11, 2009

Confidence QueenNancy

What a turkey this babe really is...

House Speaker Nancy Pelosi (D-Calif.) said Tuesday that the policies pursued by the Obama administration and by congressional Democrats are “inspiring confidence” in the nation’s economy. She said the troubled economy would soon reverse itself as government policy takes effect.

As Ritholtz reminds us:

Confidence is a symptom, not the cause of what ails us. It is ironic that so many economists make what is essentially a classic causation/correlation error. Healthy economies have confident consumers and businesses; if we shore up confidence, goes this misguided thinking, things will improve. But healthy economies also have expanding economic activity, gaining jobs, wage improvements, active home sales, free credit activity. Confidence flows from the improvements in these basic economic activities; it is not an isolated state of mind independent from the rest of the universe

Well, hell's bells! I am confident that Ms. Pelosi is wrong.

“If there’s any message from the Congress to the markets it is that this (the stimulus package) is a fiscally sound package, because markets don’t like spending, as we know. This is a fiscally sound package designed to be a recovery stimulus package with finite investments, not long-term spending,” Pelosi said

Do you suppose that she actually believes her own BS?

Take just her phrase "finite investments." Sure, the Feds MAY stop spending on them--but the States and Locals then have to pick up the slack. That choo-choo train will NEVER run on its own cashflow; nor will an additional 10 cops ever pay for themselves.


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