back to article US stimulus bill smiles on IT

The beleaguered IT industry is salivating as the US Congress has taken one more step towards putting a massive stimulus package together that will, among other things, put tens of billions of dollars of borrowed money into the industry's coffers. David Obey, Democratic chairman of the House Committee on Appropriations, …


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  1. Anonymous Coward
    Anonymous Coward

    USA.GIV panic spending program

    More handouts? Well that's it then, US government should stop using the domain .GOV and start using the domain .GIV instead.

    Or perhaps they should sell control of the net domain system, since it's the only thing of value they haven't sold or hocked to the Chinese.

    Who will risk investing money into a product where at any time the Government can spend money on a competitor and break your investment? Or where you can chase a pool of money, only to find it was the indirect result of Government spending that's now gone elsewhere, and the pool dried up.

    We have to ride out these idiots.

    /sarc ------------

    Traders like Mish are recommending buying US Government bonds over dollars, because although the projected return is negative, i.e. you're guaranteed to make a loss on them, it is expected to be far less of a loss than simply holding dollars. i.e. The Fed's actions are diluting the dollar at a stupid rate and the Treasuries actions are devaluing those diluted dollars and neither of them is making true value in the US economy.

    i.e. they're trying to blow bubbles with money, but the point of a bubble is it's big and people are fooled by it's size, and forget it's just a tiny skin of substance and a whole lot of air of no substance in the middle. The internet bubble was a lot of investment into companies because a few on the skin were making a lot money. The housing bubble was all profitable derivatives wrapped around a lot of bad loans. To be a successful bubble, people have to be fooled there is substance there. Nobody will be fooled by a Government spending program.

    I reckon every dollar spent on these programs is just wasted money. It will simply dilute the dollars spent by real businesses investing in real things.

    I'm holding onto Euros instead. I read one the traders say they doesn't like the Euros, he wants the Drachma, the Lire back and so he's buying European government bonds, particular German bonds and he's right in a way. I would like the German Euro, the Netherlands Euro, but not the Spanish Euro, the Greek Euro...

    Spain did a UK style fiscal stimulus package (wasted a lot of money trying to prop up it's overpriced property market I reckon), and they're in the Euro, Greece is struggling and it's in Euro. But overall the Euro zone governments have been more calm and measured and without the panic spending.

    I reckon a few years from now, the exchange rate will be 2 peanuts to the dollar, 3 peanuts to the pound and Euro will be the only stable currency if there isn't a little more fiscal discipline in the USA. Zimbabwe's now a multi- trillion dollar economy, but heck, at least they avoided deflation!

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