Stimulus Follow-up....

It's been 5 days since my last entry (read it here) on the stimulus bill. Did you download and read any of it? Come on - be honest! Maybe you tried?

I did and I didn't get very far. I'm accustomed to reading long and boring PDF documents but 1100 pages was just too much. I found myself jumping 10-20 pages at a time, skimming the surface and hitting mainly titles. Maybe the ADHD was kicking in but I couldn't stick with it. It seemed to me to be a compilation of spending that provides government agencies with hundreds of thousands, millions or billions of dollars. I was really stretching my imagination in seeing how providing many of those agencies with any money was going to jump-start our economy.

But the question that kept bubbling to the top: "How will this be monitored?" Will it just be doled out to those agencies so that the existing agency's administration uses the money to (somehow) stimulate the economy? I immediately imagined the money being spent to remodel government offices and buildings, maybe enhance some landscaping by adding walking tracks and a pond here and there, expand the facilities for government employees, etc. Maybe that stimulates the construction industry for a short period of time but certainly not long term.

So doubts aside that economic stimulation will even occur from this plan to any appreciable degree. How long will it take? I'm thinking 6 months to a year at best. The tax credit that is reported to add $13 a week to your paycheck is said to take effect in June. They say it'll just take that long to implement. It's a different approach from the stimulus checks that went out last year as a lump sum. It's reported that many people and families used that to pay down debt. Much like many people are foregoing large purchases right now and spending less overall. Don't forget less credit card usage. So the new approach will have a meager increase in takehome pay for the average American. What good does that do to stimulus? $13?

Speaking of credit cards. I have one I use for work. Despite my commitment to becoming debt free, I still use a credit card for travel expenses associated with work. It takes my employer 4-8 weeks to reimburse and I don't want to foot thousands of dollars in expenses awaiting reimbursement. I say all as an explanation as to why I have a card at all. My intent was just to mention the increasing credit card rates with the banks. Their terms of use agreements allow them to do it and just today Citi Bank sent me a notice explaining the rate was increasing to something like 17.xx% and defaults were going to 29.xx%. I had heard this was happening and I wasn't left out. Sounds like they whet their appetite with the billions of taxpayer bailout cash and now the banks monster wants more of our money. Have you heard they aren't lending, either? Talk to a mortgage officer at a bank and see how that's going - a fraction of consumer loans are going through.

So we are left with credit card interest rates going up now and a $13 tax credit on the horizon. Who in their right mind wouldn't be forgoing large purchases right now and saving money? I guess not me as I want a different truck. Something with a diesel. :)