With the holidays now behind us, I am looking forward to getting back in the daily news grind.
This morning, the first story I heard left me fuming: “U.S. promised unlimited financial assistance to Fannie Mae, Freddie Mac“- WAPO
“The Christmas Eve announcement by the Treasury Department means that it can continue to run the companies, which were seized last year, as arms of the government for the rest of President Obama’s current term. But even as the administration was making this open-ended financial commitment, Fannie Mae and Freddie Mac disclosed that they had received approval from their federal regulator to pay $42 million in Wall Street-style compensation packages to 12 top executives for 2009. The compensation packages, including up to $6 million each to Fannie Mae and Freddie Mac’s chief executives, come amid an ongoing public debate about lavish payments to executives at banks and other financial firms that have received taxpayer aid. But while many firms on Wall Street have repaid the assistance, there is no prospect that Fannie Mae and Freddie Mac will do so.”
Are you starting to see a pattern yet? Prior to Christmas Eve, President Obama has already spent more in his first year than any other president in our nation’s history.
Let’s just recall what Obama said (transcript) just two weeks before this unlimited bailout:
“But even as we dig our way out of this deep hole, it’s important that we address the irresponsibility and recklessness that got us into this mess in the first place. Some of it was the result of an era of easy credit, when millions of Americans borrowed beyond their means, bought homes they couldn’t afford, and assumed that housing prices would always rise and the day of reckoning would never come. But much of it was due to the irresponsibility of large financial institutions on Wall Street that gambled on risky loans and complex financial products, seeking short-term profits and big bonuses with little regard for long-term consequences. It was, as some have put it, risk management without the management. And their actions, in the absence of strong oversight, intensified the cycle of bubble-and-bust and led to a financial crisis that threatened to bring down the entire economy…”
Notice how he blames you. It’s not Fannie and Freddie’s fault. It’s your fault the housing market tanked because you bought a home you couldn’t afford. When my wife and I purchased our first home, the sales lady gave us every line in the book to hook us. And not only that, but they gave us a brand-new home with just stated income and a credit score. It was probably the same for you.
“It was a disaster that could have been avoided if we’d had clearer rules of the road for Wall Street and actually enforced them.”
How about clearer rules for the federal government? How about Obama takes his hands off the cookie jar? Our government is bankrupt yet they give a blank check to these companies which in turn will give its execs $6 million in bonuses. If you don’t care, you should. The money is coming from your account.
Lastly- my liberal friends love to echo Obama’s blame game of “I inherited this economy”. They bash Bush for the bank bailout. They forget, however, or maybe just don’t know that Obama himself voted for it. Hello? Bueller? Anyone? The man loves spending your money in the name of “recovery”. This is why he voted for it,”This is what we need to do right now, to prevent the possibility of a crisis turning into a catastrophe.”- Obama
(You should revisit my earlier post- The Time is Later)
UPDATE: I just wanted to post this again. I think it’s relevant.
In case you’re confused, medical costs are suppose to decrease under the proposed legislation and job creation is supposed to increase.
“The nation’swill keep spiraling upward even faster than they are now under Democratic legislation pending in the House, a report from government economic experts concluded Wednesday.”
Does the White House have a reason for this? Of course they do, “The Obama administration immediately challenged the analysis, saying it is out of date because the House bill is being rewritten to bring costs under tighter control and will be merged eventually with other House legislation and a Senate bill.”
You be the judge. However, estimated costs of government programs are ALWAYS lower than they turn out to be. “Washington has just run a $1.4 trillion budget deficit for fiscal 2009, even as we are told a new health-care entitlement will reduce red ink by $81 billion over 10 years. To believe that fantastic claim, you have to ignore everything we know about Washington and the history of government health-care programs.”
“While President Obama claimed the result of his stimulus bill would be the creation of 3.5 million jobs, the Nation has already lost a total of 2.7 million – a difference of 6.2 million jobs. To see how stimulus has failed your state, see the table…”
Lastly, here’s a great (short) video on our increasing deficit (under Obama, not Bush).
The “inherited” cause of our economic turmoil nonsense is wearing thin on everyone (Obama, get some new material. And this time, Pinocchio, try to keep it honest).
“Overall, President Obama’s budget would add twice as much debt as President Bush over the same number of years.” (This estimate is a low ball since Obama’s health plan is now well over $1,000,000,000,000).
The “worst economic situation since the Great Depression” turned into “it is worse than we thought” which will turn into something else. ACTIONS SPEAK LOUDER THAN WORDS, Mr. President.
June 14th post: Fuzzy Wuzzy Wasn’t Fuzzy, Was He?
If only 5% of the $780,000,000,000 stimulus has been spent (of the 5% there’s no telling how much of that is actually stimulating the economy), why are there rumors of a SECOND stimulus?
Now, Obama supporters like COLIN POWELL, are becoming skeptical about all of the spending. Gee, I wonder why.
In honor of the federal government’s poor math skills, I’m watching Good Will Hunting tonight.
UPDATE, 7/7: Power of Stimulus Slow to Take Hold
“But they reported that only about $100 billion has so far been spent and that as increasingly large sums flow out of Washington, the program is on pace to save or create 600,000 jobs over the next 100 days.”
“Leading economists agree that the most powerful effects of the stimulus package have yet to be felt. But even if the measure lives up to Obama’s expectations, it would barely offset the 433,000 jobs the nation lost last month alone, and the resulting employment would represent a drop in the bucket compared with the 6.5 million jobs lost since the recession began in December 2007.”
(Also, I didn’t watch Good Will Hunting last night. I watched National Treasure.)
Wall Street Journal buffs on Fox News discuss Obama’s “fuzzy” math.
Of the $787,000,000,000 stimulus, only 5% has been spent.
If you remember my previous post, Obama’s bulldozing approach and cheerleading mantra, “The time for action is now,” is looking pretty “fuzzy” as well. While he warned and prophesied that unemployment would hit 9% without billions of tax payer dollars, it has surpassed 9% and is will most likely hit 10% before too long.
So, this is what doesn’t add up for me…
If “the time for action” was when the stimulus was past, why are they using the excuse that communities, towns, states, and organizations are not ready to commence on “stimulating projects,” thus withholding the stimulus funds? If 95% of the country cannot receive stimulus money at the moment, why the urgency? Why was he so adamant about spending so much money (that he didn’t have, that he’s taking from you) so soon? (No one has said, that I know of, that 95% is not prepared to receive these funds. This is just the only excuse I have heard for the stimulus not being spent on its intended purpose. This is of course besides its discreet and shameful purpose — pork).
“Fuzzy” math looks more to me like the impractical, ill-advised, and impatient actions of an inexperienced leader. Those in his corner just keep saying, “Give him time.” Sadly, I don’t think we can afford it.
“Their past miscalculations demonstrate that they do not and cannot possess the information, knowledge, means, and discipline to manage the economy.” – Mark Levin, Liberty and Tyranny