Consumers spending rebate checks on retail

I remember having several conversations back in the spring when the debate over rebate checks was hot and heavy. The conversations usually centered around how the rebate checks would stimulate the economy. I said it would be nice if most people paid down debt or saved the money, but in all likelihood they would spend it at Best Buy or Walmart. Well they are spending it at Best Buy and Walmart. I guess it stimulates retail sales but I don't know how much that stimulates the economy that is suffering from a housing recession, a credit crunch and a disdain for savings. It would be nice if some people gave some money away or starting a new venture with it. Not likely. They'll probably buy big screens and ipods.

The net affect may be a larger US deficit and a promissory note from China.