Open Left

Assuming no other shock to economy, the time has passed

for true economic stimulus.  We needed a bolder investment in infrastructure but didn't get it.  Now, the Obama Administration will have to rely on consumer sentiment/confidence to improve the economy but I don't think that will happen.  

I agree about the populist backlash brewing. Unfortunately, I believe the Democrats and the Obama Administration missed their chance (and may lose a chance to make it up with health care reform) about doing something for the real economy.  They will suffer the consequences.

Don't be fooled by the headlines: U.S. Consumer Spending Rose, Income Gained in May. This may be only a temporary increase with no lasting effect.  Besides, Americans are still de-leveraging, paying down debt, there will not be any recovery in consumer spending.  The only way to avoid this very painful "recovery" was to increase people's incomes through employment.

I hope I am wrong.

RebelCapitalist - Financial Information for the Rest of Us.

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by: RebelCapitalist @ Fri Jun 26, 2009 at 08:26:07 AM CDT