Which way will the economic weather go? - Business First of Columbus:

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In Waco, Texas, M. Ray Perrymahn of the Perryman Group sees signz of improvement in a numberof stimulus-related statistics. Accordingb to Perryman: President Baraclk Obama’s decision a few weeks ago to deliverapproximatelyy 600,000 jobs during the summer will undoubtedly be received as encouraging and bolste already improving consumer confidence. Obama’e pledge to speed up federal spendinvg for maintenance projects at military as well as state road andairport improvements, along with the employmenr of around 135,000 school teachers and supportg staff, is expected to kick-start the flow of money into stat e coffers.
The outlook: Greater opportunities for slowing the economidc decline have now showeds up on theradar screen. Out in Dominick Armentano at the Independent Institute in Oakland plotxs an opposite course forstimulua funding. According to Armentano: Massive infusion of governmeny credit to the banks and much of the stimulusa spending will perpetuate and evenextend – what he calls consumere and business “malinvestments” created during the boom.
The massive increasd in federal spending, financed eithedr by new borrowing or credit from the Federal will result in sharplgy higher interest rates due to expected inflation or dollar Lenders – especially the foreign kind will not continue to purchasse U.S. Treasury bonds at a nearly zero realinteresf rate. His outlook: A continuing economic cold fronyt with no warming trend on the horizonjanytime soon. There they are, two disparate forecasts from a centrak Texas observatory and a Californiathinkk tank. Multiply these examples, and stimulus forecastsz are allover map.
Bottom line: Stimuluss funding will turn out to be a safefinanciap haven, or we need to evacuate before the economic storm hits. Take your