After more than eighteen months of doomsday predictions, the nation is just now getting around to planning for a recession. Some say it is too late. Others believe there are still hopes of eliminating a debilitating downward spiral.

On Thursday, our nation’s elected officials conducted a conference call and gathered around a virtual table to discuss the options. When it comes to keeping a multi-trillion dollar economy out of the hopper, the choices are often painful and limited.

Fed Chief Bernanke wants immediate relief. He wants cash in the hands of American consumers fast. An economy filled with cash-heavy consumers is a recipe for success. But even Bernanke admits his plan is temporary and would not solve the underlying problems weighing on the nation’s spenders.

President Bush, as usual, turns toward the “trickle down” theory. He wants businesses and their capitalistic wisdom to feed cash throughout the economy. By using tax cuts and creative rebates, Bush hopes the average businessman is the key to avoiding recession.

Nancy Pelosi and her faithful democratic followers have the opposite stance. Through their “trickle up” analysis, more welfare programs and food stamps are the stimulus needed to get the nation smiling again. In today’s meeting, Pelosi mentioned a package totaling more than $100 billion in taxpayer money.

Finding the best solution
I will let you decide who is right and who is wrong, but I cannot help but look at my surroundings and see what is working. Yesterday morning, I made a marathon trip from the nation’s capital to Alaska’s capital, Juneau. It is a unique area with an even more unique economy.

In case you are not aware, every Alaskan citizen gets an annual dividend check courtesy of the state treasury. This year’s check was somewhere in the range of $1,600 for every person, no matter the age or how long they have lived in the state. And let me tell you, this town is hopping the week those checks are mailed.

Nearly every store, restaurant, movie theater, and local airline do everything they can to get their share of the free money. Remember, the average family of four is walking around with an extra $6,400 burning through their pocket. It is the best thing that happens to the state’s economy each year.

Granted, the checks are not written with Alaskan taxpayer money. The funds come from the state’s sale of its natural resources. But it is a great example of how a government-funded rebate program can stimulate the economy. Maybe, just maybe, the program is what we need to get all of America pumping more of its oil and natural gas.

Certainly, it is too late to stop the damage on Wall Street and instantly turn the economy around. But with the nation’s leaders looking toward a “trickle down” solution, the damage will not be much more severe.

It is buying time
For investors looking for an answer to the problem right now, don’t worry. The market tumble of the last week or so is a great overreaction. There has been little news crossing the wires that was of any surprise. We have known for months that the nation’s banks were going to report huge losses. We have known the average consumer is tightening his purse strings. And we have known the job market is slowing.

The majority of the damage is done and the markets will be on the rebound in no time. Stick with your plans and keep an eye on the future. Over the next few weeks, you are going to get the opportunity to get your hands on some stocks for a deep, deep discount.

Andrew Snyder
Juneau (TFN) —