Aigh, and WASTE is exactly how I refer to it.. nothing productive comes from it, it does not help the personal debt crisis, it gives a false sense of
security and it prolongs the problem in the long run.
$600 bucks will be easy to waste in a day.
When did the IRS run these polls?
The IRS began conducting polls before a President proposal was made. They began contracting with news papers and online marketing firms to ask the
populace "what would you do if the government gave you money?" The IRS then gave an official report to Congress during the debates, and the
Democrats urged the IRS to re-do the studies to see which "demography would spend more" .. Low income families, particularly urban, would waste the
money in the largest amounts in the fastest time frame.
Curious because things have changed for lots of people and the economy today, with $4 gas (cost me $80 to fill up yesterday) etc is going to cause
more debt for many people and the money might not be spent as they had said it would be several months ago.
Oh they know....
Politicians 3 weeks ago accosted the IRS and Federal Reserve board for not doing something sooner.. they had to explain in details that hey.. we had
to draw new computer programs (the latest implemented last week) we had to send letters (original letters alone cost millions) we have to FIND people
to give the money to (vets, poor, elderly, those who fell between the cracks) and we have to deliver, which cost millions in its self, not to mention
another round of digital deposits ONTOP of regular tax preparation ..
This is tax time, and the Gov decided now is the best time.
Well the Gov got pissed AGAIN .. now the rebates are being called small and inefficient, not enough money to stimulate the economy "to little to
late" and the IRS is being blamed for it.
The IRS is beginning rapid deposits of funds into accounts via digital deposits to get people spending more now.
The IRS has already recognized that there is a large level of fraud with people above the threshold trying to get these funds, fake returns from fake
SS numbers on top of an exploited open gate as IRS agents are working on the rebates, loopholes will go unwatched in the regular tax filing..
It can only be described as chaos.
And it won't help the economy..
I don't think we'll see the bump they want and I think the fallout could make things even worse.
The governments hopes that the false sense of security will give the retail industry a significant enough bump for investors to pull out of
commodities and into these companies once more, giving them the capital to expand and hire new employees.. however, as oil and food sky rocket the
majority of the money wasted will now actually be spent on food.. if food has risen 15% in the last month, 15% of the rebates are likely to go towards
food, and investors won't move from where they are safe.
On top of all of this, few are planning to put the money into mortgages, which we are expecting another record breaking foreclosure rate, big banks
will write down more debt and the insurance agencies that insure mortgages will take another big hit.
Not to mention the original plans to give a rebate AND bail out those who cannot hold onto their house ha fallen through, 75% will now not get
As the Fed prepares for the Rate's to banks to be slashed yet again, the dollar will drop to another low, and your $600 bucks won't go as far as it
could have back in February ..
The OTHER big problem is the IRS simply cannot take the work load in getting every check out at once like Congress wanted.. it was supposed to be like
pouring lighter fluid into a camp fire and it would flare up.. all the money to get out will still take until July .. so its more or less like adding
kindling, no big change will be seen, and the US Treasury just wasted 110 billion not including hundreds of millions in IRS over time, printing,
mailing, marketing, research and so forth....
It just shows how Congress and the President are so far detatched from reality..