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Obama's Plan is a Terrible Disservice

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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.

Barack Obama

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.

next: Willie Aames Sells Everything at Garage Sale
11 comments so far | Post a comment now
anonymous March 27, 2009, 3:39 PM

I couldn’t agree with you more. This “stimulous” package is nothing more than a ploy to get democrat pork programs in place—programs that will never be stopped. I just wish we could stop him before he takes this country to a third world level with all of this spending. Where are all the men and women in office who know better?

rugbymom March 27, 2009, 3:40 PM

Thank you! I’m left scratching my head (being an economics major myself) with a huge WTF! But sadly not surprised. I have yet to hear an acquanted Obama supporter give me a good reason (based on his policies) why they voted for him, but that subject has been done to death. Even joked about on talkradio.

Let’s not forget Dodd’s gaffe in the AIG bonus issue.

The biggest point you bring up,is inflation! Huge. We will be carrying around dollar bills in wheelbarrows if this continues, the only question is when.

jb March 27, 2009, 4:08 PM

Thank you for saying out loud what the problem is. I am not sure if people don’t understand or just don’t care. I live in another state, but I contributed to Barney Frank’s opponent for the 2010 election. He needs to retire to private life.

Anonymous March 27, 2009, 4:30 PM

i am sick of this site slamming Obama! a plan is better than no plan and let’s see who is on the bandwagon when things turn around. greedy people want everything fast and that’s how we got our country in this mess now, it’s time for a change and ignorant people spreading propaganda is just a shame.

CSC March 27, 2009, 4:43 PM

Home builders hire far too many illegal workers for them to impact actual Americans being out of work. Furthermore, building houses we don’t need is not intelligent, needed growth, it’s growth for growth’s sake, more or less a Ponzi scheme where some insiders at the top make out like bandits, and everyone else loses money. In fact that is kind of the definition of the housing bubble and bust, and the economic damage we’re all paying for now. No one in that industry is a victim; they are the perpetrators of the bubble and the ridiculous housing mania, lax lending, and fraud. BTW, even the FBI found years ago that most of the mortgage fraud (80%) was done by the industry, not home buyers. And, the FBI predicted long ago that mortgage fraud was going to damage the entire economy. Nothing was done because corporate special interests were making far too much money.

cls March 27, 2009, 5:21 PM

Are you serious? Any plan is better than no plan? You are a fine example of the “sheeple” that voted for him and now have to try to defend this fiasco.

jb March 27, 2009, 5:26 PM

Anonymous sometimes no plan is better than a bad plan. We are going to be so buried in debt by wreckless spending. It is like if you only pay your minimum on a credit card, you never pay it off. We are going to have to pay more and more in taxes each year just to keep it from getting out of control. At this rate the bandwagon will have to be mortgaged.

Anony-moose March 27, 2009, 7:30 PM

While I agree that Frank and Dodd are partly to blame for allowing banks lend to low-income individuals that were buying homes they couldn’t afford, it’s not like they forced the banks into making these risky loans. Let’s also not forget the 3 Republicans, Gramm-Leach-Bliley, who passed an act that essentially tore down the wall between banks, security companies and insurance companies, signed into law by President Clinton. This act repealed protections put in place after the Great Depression, and is one of the causes of the subprime crisis. At the end of the day there’s enough blame to go around, people were greedy, both lenders and consumers. With respect to Obama’s stimulus, I wonder if Red State Mom read the latest US Corp of Engineers report that said we needed around $2 trillion to repair our nation’s crumbling infrastructure (to avoid things like the bridge collapse in Minnesota, etc.). We spent around a trillion dollars bringing “democracy” to Iraqis, maybe we can invest a similar amount in America.

Bec Thomas March 27, 2009, 8:49 PM

I agree that this is all way out of hand and really ignoring basic economics, but Dodd and Franks hardly had to twist the banks arms to lower regulation since the finincial industry was already lobbing to make it happen. The mid and late 90’s is the cause of todays economic disaster, both parties took part in making it happen, it was pushed by greed and now the market is doing what is always does in such situations, it’s correcting itself. Throwing money at banks is just slowing down the correction, and no company should ever be “to big to fail”. Remember Ma Bell? These mega companies should be broken up like that so they can’t cause as much specualted damage.

Obamamama March 27, 2009, 11:00 PM

I agree to an extent but honestly, we have to start somewhere. Bush wrecked us plain and simple. Thank god he is out of the white house….

Houdini May 14, 2009, 5:12 PM

I am appalled at the “Obama Lovers” because they blindly follow any initiative he sets forth. What is more amazing is that Bill Clinton is the primary person responsible for the mortgage mess were in. The US population has a tendency to forget so quickly and then just blame anyone.

The current Obama Home Refinance policy is a joke and is just PORK. I would be amazed to find out if anyone has even been able to participate in the policy.

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