Posted by Larry Doyle on December 7th, 2008 8:00 PM |
In the midst of the current economic turmoil, virtually every economist worth his salt can make valid cases for the necessity of both fiscal and monetary stimulus. I appreciate the use of PEBO’s use of the term “investment” rather than “spending” in proposing an economic stimulus program not seen in this country since the New Deal.
Read more here as to Obama’s Stimulus proposal, “Obama Outlines Stimulus Plan.”
I hope, though, that in proposing an “investment” program, that he is mindful of certain parameters that any qualified private or public investor would utilize prior to making his investment. What are those parameters?
1. With whom am I doing business?
2. As the investor (lender), what is the credit rating of the investment and of the borrower?
3. What is the “time to maturity” … that is when can I expect to generate a return on my investment dollars? (more…)