No Effect On Unemployment

The Obama-Geithner Bear Market
02/13/09 - Forbes.com by Robert Lenzner

[edited] The spectacle of nasty political infighting between Democrats and Republicans must be disturbing to investors everywhere. They question whether the $787 billion stimulus plan is sufficiently robust or properly focused.

Robert Albertson is a principal at Sandler O'Neill and a former Goldman Sachs banker:

[edited] After 18 years of record spending, much of it on credit, consumers must and will save the next $1 to $2 trillion of income to reduce their debt. Only private businesses create job multiplication and true future spending power. That requires a savings and investment program, not a doomed spending program.

Spending programs ate up resources for six years during the 1930s Depression, with little or no effect on unemployment.