Suddenly Mr Obama's government is out of funds. Let us review where it went:
First we bailed out the banks.
Then we bailed out the car companies.
Then we bailed out the state governments and the real estate flippers with the first stimulus - which gave a massive tax subsidy to flippers and a large injection of desperately needed capital to states. What that stimulus did not do is provide a significant source of new federally subsidized jobs. At best it kept state governments from massive layoffs or previously planned project cutbacks.
Then we bailed out the car companies again with the massive car rebate bubble that at least did put some cars in driveways. a better bubble - but not more than a better bubble. The resultant increase in GNP was predictably temporary and thereby mostly illusory.
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