The Failure of Obamanomics and the Financial Crisis

Well, here is a term that I just heard. Maybe it’s been circulating around but I haven’t

Obama and Bush meet in White House 2008

heard it until now, Obamanomics. An editorial in investors.com really underscores the failure of Obama’s economic plan, if you can call it a plan.  How is it that all the candidates, on both sides, are going to “revive” the economy by letting the private sector handle everything?  Aren’t they the ones who got us into the financial crisis in the first place?

Having been put into power by Wall Street, Obama has done their bidding to the letter, and the facts pointed out by this article makes it hard to dispute his failure to do what he promised in his campaigning, to fix everything that Bush broke. The name, Obamanomics should Continue reading

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The Anti Lincoln Bias of Rick Santorum

As presidential hopeful Rick Santorum is changing his focus on “Freedom…,” whatever that means to him, after his loss in Illinois, potential voters should know a little fact about one of his stunts.  I was reading an article in philly.com, by the Associated Press, that Rick Santorum raised $9 Million in February.  Of course, they didn’t say from where he raised it, but the article said that he went to Gettysburg, Pennsylvania to watch the results of the Illinois primary.  Illinois, of course, is the “Land of Lincoln,” so to speak.  So, Santorum was trying to make the connection of Lincoln and himself.  Nice try but there’s just one problem with that.

The problem is that Santorum is diametrically opposed to Lincoln’s policies.  That is, he is 180 degrees opposite of what Lincoln did on the economy.  Abraham Lincoln was opposed to Free Trade.  All of his policies were anti-Free Trade.  He used the power of the government to Continue reading

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Obama Running Against Obama for President?

As the voters are wondering about the presidential elections and who will win, this piece

Who to vote for?

from the Huffington Post says a lot about the massive disappointment known as President Obama  as compared to the Candidate Obama.  I call it betrayal! The Candidate promised everything that we, the American people, wanted to hear at the time.  But the President has done nothing of what he promised.  Sounds to me like he’s just another politician who lied to get in.

The sad, and scary, part is that it looks like Continue reading

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What Are People Eating to Survive in the Economic Crisis?

I came across an article in an online news journal about what people are eating to survive in this economic crisis. It’s both sickening and sad.  It has a 30 minute video in the article that really shows the depths to which people are sinking in this country just to get by in the worst recession since the Great Depression. And with the incredibly bad slate of candidates running on the Republican side, it’s really scary that there’s no change in sight.

You can watch the video here

The divide between rich and poor is getting wider and deeper. The middle class, which made America so prosperous, is getting wiped out. The BIG QUESTION is WHY? Why is this all happening? How can a once prosperous nation have such third world conditions that continue to grow? And, why is it that no candidate for the presidency, including the incumbent one, has a plan to get out of this mess?

Well, the financial crisis can be explained and understood by looking Continue reading

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The Mortgage Foreclosure Slap-on-the-Wrist Settlement

The recent nationwide mortgage forclosure settlement with the banks shows that they got off pretty easily. Although, this article in the LA Timespoints out that the banks still have some troubles ahead. While they can not be prosecuted anymore on a Federal level, they can stll be sued by class action suites and private claims.

Good place for bankers

The good part is that the banks can still be sued by individuals, the bad part is that they got off relatively easy. It remains to be seen how these private suites will play out. I suspect the banks will have some trick up their sleeves to deal with them.

We must remember that these banks were, possibly still are, involved in criminal activity which let to the ruination of millions of families. Their fraudulent practices, most emphatically with the mortgage backed securities Continue reading

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Are Banks Really Losing Money On Foreclosures?

You hear a lot about the housing market and foreclosures and how bad it is.  Real estate agents talk about how more people are renting now, it’s easier to rent a house than sell it.  I wanted to post about this interesting article I came across after having a discussion with a friend who is in real estate.

They told me what’s happening in the forclosure market, that the banks are actually making a lot of money.  In the case he cited, it goes something like this: a person bought a house with a mortgage over their head, a subprime mortgage, some years back.  Now, they are having trouble making payments, they talk to their bank which is supposed to help them work out a deal to stay in the house.

Well, the bank gets money from the Obama program (I forget the exact name) to “work with” the home owners for better terms.  The people are able to stay in the home for another six months or so, then they Continue reading

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America’s Border Wars Largely Ignored

In watching the news tonight, there was a segment about the drug traffickers and how they run form the police on the American side of the border.   Some even run their vehicles into the Rio Grande river to escape capture.  The incredulous thing is that there are traffickers waiting on the other side of the river who speed over to the American side to unload the cargo of drugs before the American authorities get there.

Border Crossing

The drug traffickers are operating more boldly and openly than ever.  They know our border patrol is stretched to the limit so they can get away with a lot.  If there is any doubt that a war is going on to our south then Continue reading

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Governor Perry Promises Jobs Without A Plan

The field of Republican contenders is scary in the fact that non of them have a clue about what to do about the economic crisis.  Since Gov Perry is getting the latest head lines on his absurd and hypocritical plan, if you can really call it a plan, I’ll just make a few comments his jobs promise from an msnbc article.

The Governor claims that he created 1 million jobs in his state.  The first question to ask is how did you do that?  What specific plan did you implement to create those million jobs?  Were you trying to create a million jobs when you implemented your secret plan? Or, were you trying for 2.5 million and only a million were created?  And, what kind of jobs Continue reading

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High Paid CEOs Also Enjoy Huge Corporate Tax Benefits

In light of the budget debate, here is an interesting article about a study on corporate CEO pay and how they actually get tax money back from the government.  Yes, that’s right, while giving themselves huge corporate paychecks, the CEOs enjoyed huge tax benefits from the federal government for their companies.

So, the government is actually encouraging companies to behave this way by giving them tax credits, while, at the same time, those same corporations are laying off workers or cutting their pay and benefits to increase profits.

As middle America struggles with paying ever increasing prices, mortgages, health care premiums, as they are worried about job loss, house foreclosures and paying bills, the CEOs are living the good life, writing their own paychecks and supported by the government for doing it.

“Twenty-five of the best-paid chief executive officers in the U.S.earned more in salary and other compensation in 2010 than their companies’ federal income tax expenses as disclosed in public filings, according to a report by the Institute for Policy Studies.

The Washington-based nonprofit group’s report, released today, examined 100 publicly tradedU.S.corporations with the highest-paid CEOs. It found that companies whose CEOs’ compensation exceeded reported tax expense in 2010 had average global profits of $1.9 billion.”

It’s a sad commentary on deregulation inAmerica.  This reminds me of the turn of the last century where big business and Wall Street were in control of the government.  There was very little regulation of the economy and working conditions were deplorable.

It took the regulations of the Roosevelt Administration (Franklin) to put some balance into the economy and put banks and corporations in check.  The incredible thing is that America as a nation prospered.  It was a win-win.  The corporations made money, the working class got a dignified living standard and the government got tax revenue from it all.

But, starting with the deregulation of the late 70s and early 80s, continuing up to the Gramm Rudman Bliley Act, which was the final nail in the coffin of the Glass Steagall Act, or regulation, America is back in the same situation where corporations and banks control the government instead of the other way around.

Isn’t the government supposed to represent the people?  Isn’t the government elected by the people, not the corporations?  This article shows a part of the society that needs to get reigned in by a government that works for the average American.

It’s time to get back to a Glass Steagall policy and regulation in the economy so we don’t have to live in a very rich, very poor society.

Read the original article here.

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Is Timothy Geithner A Complete idiot, Or Just A Liar?

I have to rant about this idiot Geithner.  How can he possibly say that the credit downgrading was wrong?  I’m surprised it didn’t get downgraded further.  I ask you, is a country that has an unpayable debt a good credit risk?  Or, how about the fact that we are losing jobs constantly?  Or does our infrastructure, which needs trillions to repair, signify a solid nation?

This is the same Geithner that spent trillions, of U.S. taxpayer money, bailing out criminal, lying bankers and investment firms to the detriment of the average Joe in America.  Did he suggest bailing out the states that are bankrupt? NO.  And he calls this “a very resilient economy!” All the states make up the United States of America, at last recollection.  If all the states are bankrupt, what does that say about the nation?

Yet, he bails out the bad businessmen and foreign banks, but not the American states.  And that makes for “a very strong country?”  Give me a break you idiot.  He should be in jail with some of the other criminals on Wall Street, maybe the cell next to Bernie Madoff because Geithner is running a much bigger Ponzi scheme by bailing out bad debt and more money on top of more bad debt until the bubble will burst.

Does that sound like a strong nation.  It’s really time to go the Roosevelt road and start massive reconstruction of out economy and finances, prosecute the swindlers on Wall Street, instead of bailing them out, and only then will America’s rating go up.

 

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