I asked this question yesterday (I even sent an e-mail to my friend David Sirota with no response) but I am still at a loss about the hubbub over the Buy American provisions in the stimulus package. Is there something that makes this provision necessary considering the fact that the 1933 (yes the one passed 76 years ago) Buy American Act is still in effect and still covering all federal government purchases? Paul Krugman and Matt Yglesias discuss the pros and cons of the policy but no one yet, to my knowledge, has explained why we need a Buy American provision in the stimulus package when we already have a Buy American law that covers all federal government spending? Anyone? Bueller? This is an honest question. What is all this fuss about?

Speaking for me only

In his first hundred days in office, President Barack Obama will do nothing more important to his political future and the future of the Democratic Party than enact stimulus measures to revive an economy spiraling into depression (I think that he has already done the most important thing he could substantively, end torture as sanctioned US policy.) And of course, it is extremely important on substance. How should we judge Obama's performance on the economic stimulus plan? I think politically and substantively, the criteria is the same - will it work? E.J. Dionne writes a good piece reviewing the strange obsession with bipartisanship, the possible reasons, and even benefits, for it, and the extreme pitfalls it presents:

Treasury Secretary Hank Paulsen just announced that the federal government will bail out Wall Street:

. . . The underlying weakness in our financial system today is the illiquid mortgage assets that have lost value as the housing correction has proceeded. These illiquid assets are choking off the flow of credit that is so vitally important to our economy. . . . These illiquid assets are clogging up our financial system, and undermining the strength of our otherwise sound financial institutions. As a result, Americans' personal savings are threatened, and the ability of consumers and businesses to borrow and finance spending, investment, and job creation has been disrupted.

More.

The Dow is down 440 points in the first half hour of the trading day. The Fed held an emergency meeting and cut the prime interest rate of 3/4 by a point. Recession seems to be here. And George W. Bush is the President for the next year. This is not good. This is an Open Thread.