“President Obama’s approval number is down at 58%. The Dow Jones Industrial Average has plummeted below 7,000 into the 6,000s — and at some point, that alone will start causing some people to ask, ‘When is this going to stop? What is he going to do?'” -Rush Limbaugh
“Perhaps the only things as high as Obama’s goals are the hurdles they must clear.” Charles Babington, Associated Press,2. 28.09
I don’t know about you but although I am not suffering nearly as badly as other responsible Americans, my 403b has gone down approximately 50%, my savings interest is below 1% and my investment property has dropped in value by about 15%. My daughter lost her job and because she had faithfully made payments on her property and credit cards, was penalized by her mortgage company with a poor credit rating report by being late with three payments–EVEN THOUGH SHE CALLED AND OFFERED TO PAY WHAT SHE COULD! We went to a debt counselor for her at a local credit union and were told that had she been late on everything and not had such a great starting credit rate, she would have gotten lots of help. But I digress…
If , as is proposed, the wealthiest 5% is to pay one trillion in higher taxes over the next decade, then I have to question, if you were in that group, what would you do? Where would you cut? Who would end up getting hurt? First let’s look at who is on the receiving end of the wealthiest 5% of the nation. If you guessed the consumer, you are correct. And if you further guessed that the increased cost of doing business and the jobs provided by this upper echelon group would change and vastly in a negative sense for the rest of us, you would also be correct. Why can’t B.O. see this?
B.O. functions under the Keynesian umbrella of economics which states that spending is the panacea in down economic times. It will fail now as history has taught us it has failed many times before.
………….We are living this right now:
Keynes felt that people would react automatically to a few dollars in their hands. Consumers would run out and buy new products, and businessmen, seeing the uptick in sales, would rush to open new plants and hire new workers who would, in turn, generate more demand.
But that’s not the real world. In reality, consumers, knowing there are hard times ahead, save any money they get either by salting it away or by paying down their debts and bills. That’s why the personal saving rate in the last quarter of 2008 was the highest in six years and spending on residential construction was down 22 percent over the past year. And the savings rate rose from 2.8 percent in November 2008 to 3.6 percent in December as the storm clouds grew grayer. And, in the real world, banks hang onto their money for fear of making bad loans, no matter how many bailouts or stimulus packages Washington passes
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Besides all of this, there are incredible divisions happening in Congress–B.O. is even losing some democrats. Spector, one of the three Republicans backing the stimulus plan expressed that B.O.’s energy proposal seemed “entirely speculative.”
The U.S. Chamber of Commerce, which also backed the stimulus bill, said Obama’s budget blueprint “appears to move in exactly the wrong direction. More taxes, heavy-handed regulations, and command-and-control government will not hasten recovery… You don’t build a house by blowing up its foundation.”
Those who are still drinking the liberal koolaide describe Obama in the “fight of his life.”
………….The rest of us just call it like it is: “…engendering the failure of America…in front of our eyes.” Rush Limbaugh