Last week the White House claimed their stimulus package has already “saved or created 1 million jobs.”
If you believe that statement, then you are too dumb to read this blog and you should not waste your time here. Saved or created is the new term used since net new jobs are not being created. In fact, we are losing jobs every month. The media should challenge this laughable assertion, but sadly they barely challenge anything coming from the White House these days.
The White House says their plan will “save or create” 3.5 million jobs. Well, even if we believe this saved or created nonsense (which I don’t) then $787 billion divided by 1 million jobs created so far equals $787,000 per job! If we take their big number of 3.5 million jobs then it equals $224,857 per job! Only an imbecile or a liar would think this is a good return on investment.
As you can see, I have no ads or anything on this blog. I do not write here to make money. I do not need money from this blog. I do it because many people ask me what I think about the economy and how to invest and believe it or not, I like to help people. People have emailed me and thanked me for my writing as they have made good money the past few months as well as avoided big losses. So, if people don’t want to read what I have to say, that is fine with me. I couldn’t care less.
Now, back in March I was a mere few days off calling the market bottom when I told you I was getting back in. I also predicted the snap back rally and gave you the range amount of DOW points it would be. I also told you then that unemployment would reach 10% plus when the White House said it would be 8%. I also told you to make some easy money by shorting the long treasury bond until the 10 year hit 4% where it would rally again sending the yield lower. Finally, I told you the White House debt forecast would be way off as they underestimated the debt they are causing.
So, if you do believe the White House and their 1 million jobs saved or created nonsense over me then I must ask why you would believe them when they have been wrong, and I have been right? They said if they passed their $787 billion stimulus (1 trillion with interest) we would peak at 8% unemployment. Now it is 9.7% and rising. They said their debt forecast would be one thing, and then had to admit it was off by $2 trillion.
Why in the world would you believe this “saved or created” jobs nonsense? If you don’t want to believe me that it is nonsense, fine. I don’t care. However, what have they done to make you believe them?
Tags: Budget, Deficit, Economy, Government, Investing, Obama, Romer, Stimulus, Unemployment