Wednesday, September 8, 2010

UBS Chief Economist Soss Says U.S. Needs `Dramatic' Infrastructure Investment to Create Jobs while "Some Hill Dems cringe at Obama's $50 billion spending plan"

From Bloomberg:
Neal Soss, chief economist at Credit Suisse Holdings USA Inc. in New York, advocated a “dramatic” program of public works in the U.S. to reduce unemployment and repair the nation’s infrastructure.

“You’ve just got to get the economy going,” Soss said today in a radio interview on “Bloomberg Surveillance” with Tom Keene. As an example, he said power lines could be buried “so hurricanes can’t disrupt the grid.”
Temporary programs, such as last year’s “cash for clunkers” auto-buying incentive, had little lasting impact on an economy recovering from the deepest recession since the 1930s, he said....MORE 
Meanwhile, back at the ranch, via the Washington Examiner:
President Obama could be facing an uphill battle to pass his latest proposal to boost the nation's economy as spending-weary Democrats cringe at the $50 billion price tag and Republicans reject what they have labeled as another stimulus measure.
Obama on Monday trumpeted a proposal to use federal funding to rebuild the nation's railways, roads and runways at a Labor Day rally in Milwaukee, but it landed with a thud in the halls of Congress the next morning.
"We'll see what Senate can do, but there is not much appetite for more spending," a key Democratic aide told The Washington Examiner.
Before leaving town for the summer recess, lawmakers fought a bruising battle over so-called stimulus spending, barely passing a whittled-down version of a state aid package aimed at helping states retain teachers, firefighters and other essential employees.

While the $26.1 billion bill finally made it to Obama's desk, the message was clear that Democrats were in no mood to pass any additional spending bills until after the November elections.

"Zero chance of passage pre-election," Democratic strategist Doug Schoen told The Examiner. "Maybe they can pass this in the House. But given the declining popularity of president and the increasing desire of Democrats to distance themselves from unpopular White House policies, and Republican efforts to brand this a second stimulus, I'm not sure they will be successful."...MORE