The latest fiscal gimmick out of the U.S. government is “cash for appliances” and this is no joke — rebates to those who go out and buy “energy efficient” refrigerators, air-conditioning units and other such durable items. This is the sort of short-term fiscal thinking that is one of the reasons why the U.S. economy is going to struggle. These attempts to stimulate consumption at a time when household spending relative to GDP is already at an all-time high are not going to carry much of a multiplier impact. There is a youth unemployment crisis, a skills crisis, a crisis among the ability of small businesses, who have been responsible for 65% of the new hiring in the U.S.A. over the past 15 years — to secure financing for working capital purposes, there is a crisis in terms of a declining manufacturing capital stock, and the programs we get are these old and tired Keynesian attempts at temporary boosts to consumer demand.
--- Rosenberg, 11.27
Billn: Me? doing a "tired Keynesian attempts" post? egad!