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Thursday, January 29, 2009

Reality Check | No Economic Solution Without Reversing the Credit Crunch

All the bailouts and all the proposed stimulus spending are useless without reversing the current credit crunch, according to many financial and economic experts.

Will Obama's stimulus package change the credit crunch crisis?


Anonymous said...

If the government wanted real stimulus they would prosecute Barney Frank, Chris Dodd and Chucky cheezy Shoomer for malfeasance in office just as blogo was prosecuted. NExt they would go after the bonuses of all the bankers who knowingly took a bonus even though they knew they were failing. Prosecute them and than they could lower the corporate tax and eliminate the capital gains tax. All this would cost relatively little compaired to what they are trying to foist on us as stimulus. And I beleive once the citizens saw they were serious the economy would take off.

Leonard said...

Have any of you noticed that this so called “stimulus”, to date, has been focused on credit and debt? Does anyone believe that more debt will get us out of this situation? Does anyone believe that the monetary system of this country is asset and money based?

The monetary system in this country is debt based and nothing but debt based. Debt is all these people understand and being in such a mind set the congress with its accomplices e.g. the “Fed” have turned this country upside down.

If that in not true please tell me how trillions of dollars of more debt burden is going to stimulate anything? The stimulus is debt based period. Debt is a drag on the economy but these guys believe that debt is somehow good.

Now go tell your banker that you want to help stimulate your economy and want to take on more debt as, after all, debt is good for an economy. Do you think that he is going to say yes that is a good idea and we will provide you with all of the debt that you want? Your banker is going to laugh and ask how much equity yes equity not debt that you have, upon which the banker can place a lien.

The banker in his relationship with customers wants equity. The bankers in their relationship with the “United States” want debt. That banker is the Fed and the IMF. They want the United States to be in as much debt as is possible. Now just who is in debt here? It is you and me and all of us, even if you do not pay income taxes you are a debtor with the United Stated to the Fed and the IMF.

The unfortunate part is that Congress in its infinite wisdom has bought into this backward thinking and provides the Fed and the IMF with all of the debt that is now impossible to repay. Congress has mortgaged the future of the people of this country to the point that it will not ever be repaid not by our children, grandchildren, or great grandchildren. Why is that? All for the profligate spending caused by the fact that there has never been a politician that did not see a nickel that he did not want to spend. And not only will he spend the nickel in front of him but the next 100 nickels coming his way.

God help us, do not look to congress because it is incapable of doing anything to correct the situation. Congress has clearly demonstrated that it will only cause more harm.

Anonymous said...

Like that famous cartoon character once said "I have seen the enemy and he is us".

Toronto realtor said...

The "package" will surely not change it - this will years. If interested, here are two articles addressing this issue, a short one here and a long one over here Happy reading!