The most over-inflated and laughable claim yet to come out of the government's collective mouth
This is a classic... 5-600,000 new jobs to be created out of these little $600 "stimulus checks".
HA! Most people will be using it to pay credit cards, mortgage payments, or buy food and gas and other necessities. Honestly... who comes up with such numbers? Don't they realize how ridiculous that sounds?
I would argue the 'stimulus' is more likely to cost that many jobs than create them, as the added impact of the $150+ billion to the already ballooning money supply is going to exacerbate what is already the beginnings of disastrous hyperinflation.
By STEVEN R. WEISMAN
Published: April 12, 2008
WASHINGTON — Treasury Secretary Henry M. Paulson Jr. sought Friday to assure the finance ministers and central bankers of the world’s wealthiest countries that the American economic picture could improve later this year and that the administration was doing all it could to hasten the recovery.
But Mr. Paulson, speaking at a news conference Friday evening after meeting with the ministers during the day, suggested that the slump had yet to run its course and that “the risks are to the downside.”
He said the ministers generally supported the actions the administration and the Federal Reserve had taken in recent months, including the lowering of interest rates, the Fed’s intervention to prevent the bankruptcy of Bear Stearns and the $150 billion package to stimulate the economy enacted earlier this year.
“I explained that we’re watching this very closely,” Mr. Paulson said, adding that the housing bubble of the last several years had been “unsustainable” and that the decline in housing prices was “not pleasant” but “what needs to happen” for recovery to take place.
He said he told his counterparts that checks from the stimulus package would go out in May and June and that they would add 500,000 to 600,000 jobs to the economy. He said that the federal government was helping more than a million homeowners keep their homes.
“The way this is structured, we expect this to make a difference,” he said, referring to the stimulus checks. The administration was not prepared to undertake any further major interventions, like government expenditures in the housing market, to protect homeowners, he said.
The secretary’s comments came at the opening this weekend of the annual spring meetings of the world’s finance ministers and central bankers in Washington. Before those larger meetings, there is always a meeting of the top finance and banking officials from Europe, Japan, Canada and the United States in the so-called Group of 7.
In a joint statement, the Group of 7 ministers issued many of their customary pronouncements on promoting stability and growth, but this time the statement highlighted worries about “sharp fluctuations in major currencies” and expressed concerns about the “implications for economic and financial stability.”
There was no reference to any country’s intervening in the currency markets to stabilize the fluctuations, however, and no reference to whether the dollar’s recent slide against the euro had been too large, a trend that has worried many in Europe because it has made their exports more expensive and imports cheaper.
As expected, the Group of 7 ministers also embraced a lengthy report by a team of financial experts assembled by the worldwide group known as the Financial Stability Forum, which called more than a year ago for a re-examination of regulatory practices by banks and financial institutions.
In a joint statement, the Group of 7 finance ministers endorsed the report and called for banks and financial firms to “promptly disclose” their balance sheets — including their exposure to risky securities, the market value of these securities and the risks of declining values.
In addition, the ministers called on firms to strengthen “risk management” practices by building up their capital and cash reserves to guard against losses in the marketplace. More “prudential oversight” of banks was called for, but no specific proposals were offered on how the oversight or increased disclosure would occur.
“This will be implemented in different countries in different ways,” Mr. Paulson said.
He also said “there was a universal feeling in that room” that all would cooperate to do “whatever it took to protect” global financial systems.
Asked how concerned the Europeans, Japanese and Canadians were that the American economy might drag down the rest of the world, Mr. Paulson referred to the theory known as decoupling, which holds that other countries might be immune from an American slump.
“No one around that table believes in decoupling,” Mr. Paulson said. He added that they were riveted by a presentation by Ben S. Bernanke, the Federal Reserve chairman, to the effect that the American economy might be in a recession, which is what he said last week in Congressional testimony.
“There’s no doubt that when Ben Bernanke was talking about the economy, I didn’t see anybody dozing off,” Mr. Paulson said.