Take a look at this video. It really highlights how ridiculous it is to think that we are making progress when we cut $100 million of spending. Come on! It's time to get serious about cutting spending and we need to cut all spending -- from medicare to social security to defense to welfare to education to everything. It needs to begin with downsizing government and getting government pay and benefits on par with the private sector.
This is a quick video that clearly illustrates how small a $100million cut is:
http://www.wimp.com/budgetcuts/
The good news my friend is that we the people have turned a psychological corner. We realize we don't need all the stuff we were cashing in our equity for. We are hunkering down with the things that really matter - family, friends, and faith. As a result it will not be a consumer led recovery. The federal government will do its best to break even - in terms of printing or not printing money. They will not be able to lead. Our state governments are not sure if they are afoot or on horseback. Meanwhile, the S&P 500 collectively have over $1 trillion, that's right trillion, in cash on their balance sheets. Will they use it for good or ill? Meaningless question - they will simply try to optimize. And so goes the invisible hand.
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