Zeev's Turnips Patch-No Politics (ZEEV)

[skono4]

The federal government is laying out some enormous sums for bankers, consumers and industry. I don't think any of that is calculated into 2009 spending plans as reported from this source. GDP growth is negative right now so we don't know what to expect for year over year comparisons betwen this year and next. Another very likely variable is the contraction of revenues to state and local governments. I'm not sure how they will adjust their projected spending and tax policies. It's unlikely that state and local agencies will be able to raise the kind of monies needed to fund some of the long term spending plans on roads, schools, hospitals and prisons under these circumstances.