The $787-billion economic stimulus package

By Joyce Moed, Reporter

DENVER–The $787-billion economic stimulus package passed into law last Tuesday by President Barack Obama includes government spending and tax cuts designed to bring the country out of the economic recession.

Credit Union Journal asked economists if this bill will have any impact on CUs.

“I don’t see anything directly impacting credit unions, but to the extent that it draws a line under the recession–that can only help credit unions,” said Dave Colby, chief economist for CUNA Mutual Group. “Hopefully it ads some sanity to the credit market.”

The bill is intended to create millions of jobs.

“Do I believe it’s going to happen? Probably not,” Colby said. “I don’t see the creation of a lot of jobs in this program.”

He said that the grants that went to specific fields, such as law enforcement, “may not be there next year.”

“In Wisconsin they say we’re getting $2 billion,” Colby said. “We’ll take whatever money we can get.”

Colby said it’s been a frustrating time for CU economists.

“We’re still searching for the bottom that’s going to turn the economy around,” he explained. “And frankly, we haven’t found it yet. It’s a nightmare because we are creating new scenarios each and every month. New shocks continue to emerge.”