Wilbur Ross argues that the US now needs a second government stimulus, because the first one wasn’t enough to jump start the US consumer.
- “There’s a great probability that the Obama administration will do another stimulus before the summer recess.”
- “I think it’s really going to be that we’re going to continue the massive transfer of liabilities from the private sector to the public sector. That’s really what’s been going on. I think it’s the only way to deleverage the american consumer”
While the pros and cons of any stimulus package might be debatable, it’s hard to argue that a second stimulus wouldn’t be great news for Mr. Ross’s financial stock exposure. His participation in buying toxic assets under the Public-Private Investment Program (PPIP) would likely be helped as well.
Maybe his opinion should be discounted a bit.
(Table via Guru Focus)
One of two CNBC interviews shown below. (Start at 2:50)