Obama has had a serious impact on this economy in words and deeds. First of all he has been overly pessimistic on his soap box in order to push his stimilus bill through and now his huge budget. This has caused thousands who were hanging on to devalued stocks(in the hope of a recovery) to lose hope and sell. This has worsened the economic picture by futher restricting cash flow in those companies. Secondly, Obama's stimilus package is seen for what it is: a hugh spending bill that fullfills many of the Democrat's wish lists but, will do little for the economy and create a lot of debt which translates into higher taxation. Obama's cap and trade proposal for the energy sector will hurt the economy and take a lot of money out of taxpayers wallets when many taxpayers are already struggling. Obama won the election on a platform of hope and change we can believe in. As President he has failed to offer hope and the changes he is instituting no rational economist can believe in.
Lars Larsons has proposed an interesting idea which would free up capital in the banking system without making the taxpayer accountable for the banks bad debt. He has suggested that the Fed offer a refinancing of home mortgages that are not in default. They would offer a rate of 4 or 4 1/2% and finance the loans by selling treasury bills which are sold at 2 1/2% and give 1% to the banks for handling. This would put money back in the pockets of millions of Americans which would move some back from the brink and give others more money to spend on goods and services. The Banks would have billions of dollars all of a sudden which they would need to invest by giving out loans.
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