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Politics : Sioux Nation
DJT 14.00+0.7%3:59 PM EST
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To: stockman_scott who wrote (157735)1/9/2009 9:24:10 AM
From: cirrus1 Recommendation  Read Replies (4) of 362277
 
Two points - OK - perhaps four or five:

1) A large part of the what ails the economy is confidence. That will be addressed January 20th.

2) Folks with mortgages are refinancing into 5% fixed rates. As lower payments kick in they'll have money more spendable income. Initially they will pay down credit card debt - as they should - after that spending should gradually pick up.

3) Anyone with a brain is terrified of the double whammy of losing a job AND THEN having to come up with another $1,000 a month to cover health insurance. Those who now pay their own health care often find it the largest item in their budget - and increasing annually. Fix health care once and for all - merge Medicare and all these piecemeal federal and state programs into one - financed with a national sales tax if necessary - and you've solved the confidence issue, the Medicare funding issue and put money into people pockets.

4) The deficit must be addressed. All politicians say they will address the deficit - later - but they never do. Obama is saying the same thing. That's a mistake. Remember Bill Clinton? He persuaded Congress to pass an economic recovery plan that included tax increases - which the Republicans screamed would drive the economy into a recession. Instead, when folks saw that the government was getting its house in order, the economy took off. There is no way to have a strong economy with trillion dollar deficits as far as the eye can see. An economy built on a trillion dollar deficit is built on a house of cards.

The $700 billion in checks the government sent to individuals back in the spring of 2008 didn't help one bit. The $700 billion bank bailout didn't help. Near zero interest rates aren't helping. We need to take another look at the fundamental issues from a bottom up kitchen table viewpoint and see why people aren't spending - then address these issues. Throwing another trillion isn't going to help.

Finally, the economy is like a massive ship. It doesn't change direction quickly. Whatever Obama does, it's going to take months to see results. Some patience is in order.
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