It was the one year birthday of the American Reinvestment and Recovery Act (the Stimulus Package) and the President touted its success one year in.  And despite what many on the far right claim, economists on both sides of the aisle would agree that it has saved plenty of jobs.  By looking at recovery.org’s archives and other estimates we have compiled estimates of how many jobs were saved at 5 different points since the act was passed.  Below is our estimates of how it has benefited the economy.  All I have to say is, thank god it passed because otherwise, we’d be at a 10.9 percent unemployment rate.

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On March 9th 2009, our markets were in abysmal states bottoming out below 6,500.  Today however, the Dow Jones Industrial Average continued its huge three week rally and closed near 7,900.  Moreover, the S&P has had its best month by far since 1987 this march and Americans’ economic outlook has jumped from just 16 percent saying its getting better to a whopping 30 percent.  There is no doubt that we have seen a dramatic increase in our economic prospects but the question is whether this rally will last.

A stimulus deal has finally been reached as many of you most likely know.  Just to outline the package itself so that in the future we will be able to reference specific parts of it to see its progress, I’m putting up some of the main contingencies of the stimulus bill.  If as expected, the bill is signed next monday, it would be a great benefit to the Obama administration and something they can take credit for having done so quickly and smoothly (unlike that thing called TARP that sent the markets crashing yesterday when Geithner presented a plan that included no plans of any kind). The stimulus package looks fairly promising and does a good job of keeping wasteless spending to a minimum (granted there still is plenty of ridiculously wasteful money in there) and providing both short term and long term benefit which is what the country desperately needs.
Details on the plan after the jump: Read the rest of this entry »

As we wait for the news of the stimulus package there a few stocks I want to discuss a sector that I believe is at one of the best buying opportunities since 1990. A few weeks ago I said that energy stocks are going to lead the market. I am now starting to believe Technology stocks will be there right with them. There is also a third sector that I believe will be getting a bull run of its own, but that article will be published on Fiscal Frenzy later this week. The three stocks I want to recommend to you are IBM, Google, and Oracle. IBM is one of those companies that is getting prepared for the worst. It is cutting pay and laying of workers. The other day it beat the streets estimate in one of the worst economic environments the United States has ever seen. If that does not show preparedness I don’t know what does. The only problem with IBM is that it not cheap and it is not undervalued. What attracts me to Google and the reason Fiscal Frenzy has recommended it many times is the fact that it is an innovator. Fiscal Frenzy has written many articles on how we believe Google to be a good buy and how it could be the next great holdings company. It is expanding by testing new products for the new “smart grid”. Companies like IBM and cisco are also doing the same. Yet the “smart grid” business can one day at billions to Google’s market cap. Oracle is a growth stock and a safe one at that. It reached a high of 22 dollars during the last Bull Run and is now at 18. This means it is very much a long term buy company. If you are thinking to buy stocks and hold for 10 years, definitely buy oracle. Also acquisitions always and earnings always impress me, and that is exactly what Oracle has.  All in all, solid and safe, large companies are the ones you should look to while we are stuck in this financial panic mode.