According to the news the President had appointed the Vice President to oversee spending of the economic stimulus money. There is a web site, www.recovery.com on which the government promises to keep Americans updated as to where their money is being spent. For those interested in trading the stimulus and infrastructure investments of the next year or so of the economic recovery this may be a useful tool.
It would appear that the administration is serious about updating the public about where the money is going and for what immediate purposes. The obvious general purpose is to pour money into the economy to get spending going. Along the way the administration intends to plug the dike in a few places including health care, out of work benefits, etc. The recovery.com website looks to be a useful starting point to follow what is going on.
An interesting interactive map on recovery.com shows how many jobs may or may not be saved or created, by state, by the economic recovery stimulus package money. Although one can argue the merits of how the money is being spent and whether or not real, lasting jobs will be created, someone will receive every dollar and will spend the money in some way. The point for the short term trader is to be conversant with what is going on and to be ready when the market moves in any given sector.
Another table shows where the money is going in general terms. Tax relief is said to be $288 Billion. However the site breaks down the tax relief by category and it turns out that much of the tax relief is going to the categories of Infrastructure and Science, Protecting the Vulnerable, Education and Training, and Energy. The following tables show the Tax Relief Breakdown followed by the categories including tax relief.
|
Tax Relief
|
$288 B
|
|
Infrastructure and Science |
$15 B |
|
Protecting the Vulnerable |
$61 B |
|
Education and Training |
$25 B |
|
Energy |
$22 B |
|
Other Tax Relief |
$155 B |
|
Overall Stimulus Package Breakdown |
||
|
Category |
Grants |
Including Tax Relief |
|
State and Local Fiscal Relief |
$144 B |
$144 B |
|
Infrastructure and Science |
$111 B |
$126 B |
|
Protecting the Vulnerable |
$81 B |
$142 B |
|
Education and Training |
$53 B |
$78 B |
|
Energy |
$43 B |
$65 B |
For those who follow the news this may be repetitious. Nevertheless that is how homework is. For the short term trader the “Timeline – Milestones at a glance” table allows you to scroll through projected dates for paying out and reporting on the stimulus money. Here is where the short term trader can do a little more research into just who will get the money and when. Then the question is, “What will the market do and when?”
Some may think that we have belabored the issue of the recovery money and stimulus package on these pages. Our response is that what usually appears to be unique insight or fast reaction time is simply the result of basic research and forethought.
Save the link to www.recovery.com and visit it from time to time. Keeping up with the news is good. Staying ahead of the news pays. Staying ahead of the news with a good trading plan and your personal trading psychology in check will make you rich.
Popularity: 9% [?]
Be The First To Comment
Related Post
Please Leave Your Comments Below