Red State Mom: I would like to share some thoughts about President Obama's stimulus plan. I think he is doing the country, our children and future generations a terrible disservice.
Our families will be paying for decades to absorb the unchecked spending and reckless government policies that are included in the bloated and overpriced stimulus plan(s) that do little to solve the housing crisis which is the root cause of the meltdown.
A brief history lesson; and please share this with your older children who should be eager to learn the history of the leaders that saddled them with staggering debts. These debts won't be repaid in their lifetime, regardless of the eventual tax increases. Representative Barney Frank (D) and Senator Chris Dodd (D) both chair financial committees in Congress. They are the leaders of a group who bullied banks to lower lending standards for people who did not qualify. Yawn, yawn. Why should we care? Because this was the root cause of a problem which leaves us needing to be "stimulated."
Those people who benefited from the lax loan standards getting mortgages they never would have qualified for was the initial spark. The fire begins: Homeowners default = more homes on the market = home prices drop = home builders stop building = layoffs = less money being spent = businesses contract = more layoffs. Obama's plan spends trillions, and only a very small percentage of which goes to alleviate the housing crisis.
There are billions in pork spending (many examples in The Wall Street Journal). The President's plan requires loans from countries like China, not to mention the additional dollars the treasury will have to print. Inflation anyone? Solutions? Let those in good standing refinance their homes, not just the Fannie and Freddie darlings.
Some people SHOULD lose their homes. It is a tough lesson to learn. Let people who DO live within their means buy these vacated homes. The market will correct itself without government intervention. Cut taxes to businesses and the rich. Businesses will hire and the rich will spend their money. A hiring boom and money flowing without government intervention?
Now THAT'S stimulating.