Goldman's O'Neill Sees Potential `Correction' as Stimulus Is Rolled Back

Yes, I have had the same worry--that irrational deficit concerns would lead to a paring back of the stimulus. However, Obama recently said he was going to "speed up" spending over the summer in order to stimulate job growth.

I'm taking a calculated guess here, but I say that they will not roll back stimulus if they do not see job growth. Job growth is the key to sustaining political "capital" and more than anything else, that's what the president's political handlers are focused on doing, sustaining or adding to their political capital.

However, they may view deficit reduction and "fiscal responsibility" as earning them more political capital. It's a hard call. I am going with the job growth and the president's statements, but I could turn out to be wrong. So far, the numbers say the government's money pump is pumping in, not out.