I guess they won't like me but I am going to put mine in the bank.

My understanding is that there's still a chance Senate dems will try to ammend the bill to include tax rebates for housholds that don't pay taxes. I understand everyone would like to have an extra wad of cash to spend, but it's called a "tax rebate" not a gift to anyone with a pulse.

Hello AJ,

Help me understand how the $300 to $1,200 tax rebate check would help the economy? If people worry about economic recession, they are more like to bank the checks rather than spending them. I think national spending is also psychological (consumer confidence?). Not sure if the extra check will do the trick of turning the ship around.

Steve,
the $1,200 per family plus $300 per child will help the economy becasue not all families can bank this money.  I suspect most either must or will spend this money on goods and services.  Then in turn, those vendors will use that income to buy more raw materials, provide more income to their workers, etc whoc again will spend this money on more goods and services and so on.  This economic stimulus will have a mulitply affect to the economy and also stimulate new jobs, goods, and services.  I am not sure what the mulitply factor will be but I suspect that for every dollar injected, there will be at least $5 dollars in economic activity.  You will have to talk to a economist for a better explaination on the mulitplier affect. 

As you pointed out, this, in a general way, will help boost consumer confidence.  There is the old sayng about a self fullfilling prophecy.  The more doom and gloom, the more we will spiral downward because that is the expectation.  The more positive the news, the more confidence, the more we are willing to invest in the future. 

I have to  say that I agree with the Bill and what it is doing.  But there are other factors in play that affect long term rates, liquidity, etc.  Go to Matt Heaton's blogs.  Here is a URL for his latest take on the financial market.

Bond market puts the smackdown on the US Treasury - Rates up

Sharon,
I personally believe that there is a lot of pressure from the president to get a bill out.  One thing about big government, you have to make a broad stroke with the paint brush, and in doing so, will probably either include a group that would rather have missed or miss a group that you should have included.  Hopefully, if they include a group that gets a rebate that for one reason or another some say they shouldn't, it is a very small group so the "lose" is small.  But in any case, for the people that get the rebate whether deserving or not, they will send their money on goods and services.  As I stated in a comment earlier, there is a multiplier effect to the economy that goes way beyond the money injected.  AJ