The Goverment is Broke so any stimulus spending is from borrowed money.
There are times that borrowing money can be effective such as if you can borrow at 3% to create a project that yeilds 5% but that requires you to sell the end result and pay off the loan.

To pay men to dig holes in the ground or polish bridges or build bridges does not create wealth because no one is buying the end result and therefore we are only redistributing the money. Yes its better than simply giving it away but in the end your only redistrbuting our own money.

Since goverment doesn’t create weath it becomes apparent that only industry does….industry creates jobs , creates new products, new markets and those markets create tax base.

America didn’t listen to Ross Perot who said 20 years ago “you gotta make things” or the whooshing sound will be the money and jobs leaving this country…. well the jobs are gone and our dollar is about to crash and no amount of road work create the wealth we need to pay back 15 trillion in foreign loans or the 50 trillion coming up for entitlements.

As for the economy, borrowed money will not help the economy. As has been pointed out in comments already, sometime soon someone is going to notice that the government is out of money. And none of the variations on “If they can give money to (name undeserving recently bailed out ga-zillionair), then it makes more sense to give it to deserving working Americans.” will matter.

Our economy will need to find another way out besides ever bigger government commitments of money to be borrowed in the future.

The pork barrel spending of the US government has been the biggest problem over the last 30 years. Not only do they buld bridges to no where, they do so at the most expensive prices possible.

Are we looking at the final bubble ?

There is nothing that benefits folks who are struggling more than neighbors who are doing a little better, who spend money in local stores and support their communities. Don’t forget, people with decent jobs provide all the funding for local government.

The somewhat obscure truth of our situation is that we’re broke mostly because we’re sending all our money overseas. Building infrastructure won’t solve all our problems, but then, it’s not the only arrow in Obama’s quiver, either. That stuff you see at WalMart may look cheap, but when you buy it, you’re helping to impoverish your community, because the only moneyy your community gets back from what you spend at WalMart is the dirt-cheap wages of WalMart’s employees; the bulk of the dollars spent at WalMart disappear from the local community entirely and forever.

If you want to tell people how to fix the economy, start by trying to understand how it broke down.

I like the idea of repairing all of the bridges at this time. There are a lot of bridges out there in rough shape.

I also think we need to move forward on increasing the capacity and reliability of the electrical grid. When plug-in hybrids become the norm for cars in 10 years and renewable generation becomes common, we need an electrical grid that can handle the shift to distributed generation. We’ve got to be able to put the electricity generated at small sources, like homes, to where it’s needed.

The only thing that worries me is the timing. If Washington dithers, as it usually does, the economy will recover on its own and the infrastructure spending will hit just in time to cause inflation. The government will end up spending far more on necessary infrastructure than necessary.

Looking forward to our current deficits in public and private sectors and unfunded future liabilities, we should allocate some money buying strong fundamental multinationals from abroad like energy, agriculture and mining companies anticipating future growth.
Stop throwing good money after bad saving these fools on wall street. Putin from Russia nationalize lucrative oil giants. We nationalize insolvent financial institutions with trillion dollars of liabilities in derivatives and other toxic securities. Amazing isn’t it?

Peter Schiff, Jim Rogers, and Ron Paul are smart investors. I get worry when more and more people agree with what they are saying b/c it means we are past the point of no return.

Peter said, “We can’t all get out of the market at once.” I guess we owe gratitude to all those wall street analyst, economic commentators and economist for continuing to mislead and confuse the public and leading them down a path off a cliff.

A lot will depend on which projects get funded, where they are and what they do to bolster the future as well as the job market.

The 1980s had retail, the 1990s had technology, and the 2000s had real estate; they each bubbled, burst, and never came back. This will be no different.

There is always the risk of creating a new bubble somewhere else when interest rates are so low (1% Fed rate). The bubble happens when a healthy attitude of ‘buy low, sell high’ turns into a dangerous attitude of ‘buy high, sell higher’, such as happened in commodities and real estate, asset classes that don’t produce income.

New bubbles are possible, and government lending and spending can easily cause them, again. Be careful.

Of course one can be created if expansionism is taken too far but is not likely yet. Significant amounts of wealth and credit have been destroyed, and that will persist. To believe we’re entering the next bubble is presumptuous.