Posted on 03/09/2009 6:27:53 AM PDT by reaganaut1
Clearly the Obama administration has not brought comfort to the markets in its initial weeks in office. The President and his team have also failed to bring clarity or coherence. Their massive agenda is not only ambitious, bold, and expensive, it is contradictory.
Take the President's new budget proposal, for instance. In order to pay for the massive expansion of government spending, including $634 billion for health-care reform, Obama proposes to resort to the time honored populist tradition of "taxing the rich," meaning families making in excess of $250,000. Despite the administration's incessant cry that the government should prop up the housing market and increase home prices, the budget contains a provision that would reduce the amount of mortgage interest deductions "wealthy" families can take on their home payments. In other words, Obama would like to take the seemingly few remaining people in our society who can actually afford homes and reduce one of their biggest incentives for home ownership. Not surprisingly, the National Association of Realtors opposes the provision, saying it "will result in further erosion of home prices and home values."
Similarly, the administration keeps talking about greasing the credit markets, encouraging banks to lend again, and driving down the costs of borrowing money, particularly in mortgage markets. However, Obama favors legislation that would allow bankruptcy judges to alter a bankrupt mortgager's payments and cram down new terms on the creditor. Lenders may react by appropriately increasing mortgage rates that account for a greater risk premium in financing home purchases.
Obama and many of his Democratic allies in Congress are also remarkably haphazard in their approach to dealing with the automobile industry.
(Excerpt) Read more at spectator.org ...
I don’t understand soaking those who make over a certain dollar amount but well below $250,000 and giving $80billion to AIG on the THIRD check and they still say it isn’t enough.
This is redistribution. It is not an economic recovery plan, it is just a change of economic systems.
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