It's Obama's economy now

With the reconciliation of the stimulus bill, this is now President Obama's economy. 

The final bill has $789 bill in spending, with only a third of that in tax cuts.   By very definition, the most stimulative thing you can do for an economy is cut taxes.   This spending will create temporary jobs only -- very little is permanent about it, except the massive debt that's piling up.

So why not cut the capital gains tax, and give the economy an insta-jolt of liquidity. Or the corporate tax rate, which will help companies grow again.   Income tax cuts are great, but it should have gone further.

Even Diamond Joe Biden thinks there's a 30% chance this bill fails.   Everyone should hope that it works ... but hope isn't a strategy.

Footnote:  A guest on CNBC made an interesting point this morning.  Right now, our national debt is 75% or GDP, and household debt is 95% of income.  How on earth could the response be: spend more.  The problem is that we're already over leveraged (this recession is really a massive de-leveraging).  Can someone please explain to me how unprecedented borrowing and spending make sense? It may be a short term fix, but long term it's going to suffocate the economy.

Footnote II:  If you don't believe my screed ramblings, just listen to Cramer. Cramer knows all.