Chad Moutray, Advocacy’s chief economist, and Jules Lichtenstein, senior economist, attended the National Economists Club luncheon on Nov. 6th in Washington D.C., featuring Stan Collender. Collender gave a post-election talk titled “The Morning After the Morning After: Outlook for the Budget,” and shared his views on the election.
Collender is managing director at Qorvis Communications in Washington, D.C., and is a frequent speaker on the budget and the economy. He indicated that in the current economic environment efforts to control federal budget deficits are likely to take a back seat to federal policymakers’ efforts to restore financial stability and economic growth.
Collender’s blog, www.capitalgainsandgames.com, discusses these issues further. Information about National Economists Club is located at www.national-economists.org.
—Jules Lichtenstein, Senior Economist
5 responses so far ↓
1 Delight // Nov 12, 2008 at 10:04 pm
What is needed to somewhat fix this situation that we are all in is actual lending at the street level. SBA will not recover and finance all of those nice front page success stories that all the government folks love to parade by, without the secondary market being fixed. Now, we are in a credit crisis and there is a tightness of liquidity and it is reasonable to beleive that there would be some stresses in the market for SBA guaranteed loans, however, the process is not transparent, the process does not allocate capital to where it is most desparately needed. Until the weaknesses of the process are adressed the program will not be a viable financing vechicle within the US Small Business Community.
Tis what Tis.
Dlight
2 Brian // Nov 19, 2008 at 2:22 pm
Until the government gets out of the business of capital allocation nothing will be “fixed”
3 voip // Nov 24, 2008 at 1:13 am
It’s simple (or not so simple): Government should reactivate the lending market, so those who are qualified can get lending and those not eligible can’t. Restore financial stability won’t be feasible when you have the next wave of Credit Default happening on corporate bond market. This could become a huge crisis in 2009, the same nature of default happening on corporate bond one year after it happening on the housing market.
4 Financial Statements Budgeting // Dec 11, 2008 at 12:54 pm
I agree, the government needs to get out of business and let it work on its own. Companies need to fail so that new companies can come in. If they can’t run them then they need to fail.
5 Finance Guy // Feb 23, 2009 at 2:05 pm
Of course the budget deficit will have to take a backseat to continued federal spending, because people are losing their jobs, even more budget deficit at this point is not so bad considering we are already trillions in debt, what’s another 1oo billion? One has to look at the whole, and the most important thing right now is to create more jobs, so people have money to spend. The economy is not going to get better if it is not stimulated enough, as is the current condition.