Stimulus Checks Coming Early

http://finance.yahoo.com/taxes/article/104939/Stimulus-Payments-to-Go-Out-Ahead-of-Schedule

The federal government, eager to boost the flagging economy, will start distributing special stimulus payments Monday—four days earlier than expected.

"Beginning Monday, the effects of the stimulus will begin to reach households," President Bush said Friday. "This money is going to help Americans offset the high prices we're seeing at the gas pump and at the grocery store."

Interesting coincidence that the FOMC rate-setting meeting is Wednesday, a day before people were originally supposed to start seeing their direct deposits/checks.

By the way, for direct deposit filers, the stimulus money is obviously initially deposited into a bank. People receiving paper checks will get money later. It would be interesting to know the statistics on how many people deposit those paper checks into a bank or if they request cash immediately for spending. I suspect more people these days use electronic means of spending, so I'm guessing most of the stimulus money will first be on a bank's balance sheet before taxpayers use it. That makes it even more interesting that this stimulus package was moved up a whopping 4 days, which just happened to move the distribution ahead of the FOMC meeting.

It is also comical to think that more money will ease prices at the gas pump and grocery store. It must be understood that this stimulus money is essential money borrowed from taxpayers to be given to taxpayers. Why not just have a national "spend $600 on your credit card holiday". It is no different. And the effect will be even higher prices, not lower. Make no mistake, this is just another money printing exercise.