According to Wilbur Ross, of WL Ross & Co., the US economy needs another cash infusion to take off. Speaking to CNBC this morning, Ross said the first stimulus package was insufficient to help the US consumer start spending.
“The consumer is about 70% of the economy and is still disabled. The consumer can’t borrow…I believe that Obama will have to go for another stimulus package, probably in the spring, because I don’t think unemployment is going to get that much better by then,” Ross said.
Ross also talked about the dollar. According to Ross, the dollar should be devalued because the U.S. economy is less competitive than other economies and has higher debt, and “some form of SDR” should become the world’s reserve currency.
Wilbur starts around the 3:00 minute mark
Are stimulus pacages doing any good to us? How long would it take before we, at ground level, see the things changing? Many small and medium businesses have been hit severly by the recession and people are anxiously waiting to hear something good before they file their returns in Oct.