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  • docjoe999 docjoe999 Mar 4, 2009 12:11 AM Flag

    To: ilap & btdt

    <So far the only thing that Obama has screwed up is his nomination of tax delinquents to senior admin. positions.>

    And that is no coincidence. The fact is that guys like Daschle and Geitner knew the IRS was not doing its usual amount of auditing. So there are more revenues to be collected just by enforcing existing laws.

    <Who do you suggest pay for all these bailouts?>

    Most of the bailouts involve borrowing money at 0 to 2% and buying preferreds and other assets with higher yields. So most of the "bailouts" are really the buying of assets. Whether or not, more money is needed is going to be due to how wisely the government invested our money. To be honest, so far things are not looking swell.

    If you look at the AIG bailout, the AIG holding companies have ample assets to pay back the government but there are no buyers. And why not? Because most buyers think they are going to get screwed. Bank of America got totally hosed by Merrill Lynch for example.

    What Obama has tried to do is please everyone and in doing that he has pleased no one. I know that it's not fair that he was handed this Herculean task in its first 100 days, but that is the hand he was dealt.

    <The simple truth is that what is good for America is good for the rich, but what has been good for the rich has not been good for America.>

    Musk, outside of the people without jobs, the people hurt the most in this Great Recession have been the rich. Given the fall in prices we have seen lately, those with jobs living paycheck to paycheck are doing better.

    Most rich people have played by the rules, and these people have seen their investments fall by 50% and their home values plummet by 25%. Even still, those making over $250,000 per year voted 52% for Obama even though Obama pledged to raise taxes.

    Nonetheless, for Obama to come to the good rich people and say, "Need some help here" before going after the bad ones is politically very foolish. If Obama can inject some trust back into the market, then the markets will likely rise and then the good rich will have their faith restored. Obama is lumping all the rich in with the scumbags like Angelo Mozillo and Dick Fuld. That is a HUGE mistake.

    <Yet the changes you mentioned above are basically regulatory and administrative in nature and don't address the startling decline in aggregate demand, the loss of jobs, the homeless shelters and breadlines that will need support, the decline in our country's infrastructure, etc.>

    Not at all. There are going to be bread lines, high unemployment, loss in demand etc as long as American keep their money parked in cash and gold. There has been a complete loss of faith in the marketplace. Government taxing and spending is going to solve none of these problems.

    The free market is the answer to our problems. Where the Republicans screwed up is that they thought a completely unregulated market was the answer. It isn't. We know that from the 1920s. What Obama needs to do is like FDR did in the 1930s and either pass new laws or enforce existing ones such that the market is a much less corrupt place.

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