Robert Nabloid

Great Expectations for Obama, But Not the Markets

Society has went toward one that begs government to solve it's problems as if government has all the answers. So government politicians are pressured to "do something". With Obama entering the Whitehouse, it's no wonder corporations are lining up for cash... they can smell some free money - and if enough of them cry loud enough - they might just get some. I hope it doesn't happen - but Obama was in favour of the bail-out... so why wouldn't he be in favour of more? That's the answer government has - bailouts... so we just need more bailouts if they are correct, pepper in some stimulus packages and some tax increases to give the government more money to spread around to solve all these pesty economy problems. It's so wrong!! Bailouts don't solve the underlying problems.

Bail-outs, Stimulus packages, reduced interest rates, etc, etc... All of these proposals only deal with masking the symptom - that spending in the economy is declining - but fail to address the underlying problem that has created the symptom - The economy isn't competitive and is unsustainable. We've taken on too much debt! We hid our problems for decades by taking on debt and spending it, as if it was already earned - but consumers have realized they need to pay some of these debts off...

No politician that promotes bailouts or picking and choosing winners with unearned money, will solve the problem. The economy is not sustainable nor is it competitive. Unless these issues are addressed (and I don't expect them to be), I really can't see what it is people hope can be accomplished by "spreading the wealth" through more stimulus packages and increased taxes. Those only further mask the true problems. But I have no fear - in the fight of Government Vs. Economics - Economics will win in the end. We will, eventually (might take decades), realize that we need to be more competitive (and innovative/inventive) and less reliant on consumers spending debt dollars if we want to be sustainable.