Drew Horn

Wall Street Breakfast: Must-Know News

The most troubling part of today's Must Know News is the description of how government continues to enable Americans to borrow money many of them will not be able to repay. This isn't new. Its a continuation of US government policies that have, and will again, result in taxpayers paying mortgages of others who don't earn enough to own a home. Its being done at the same time we are paying for the mortgage abuses that contributed to the current recession. It seems that the United States Government is out of control and each branch simply reacts to the lobby with a special interest agenda and the biggest political contribution. This is one more example of why our country is in trouble.

Wall Street Breakfast: Must-Know News

It will be interesting to watch congress as it reacts to Obama's house bail out proposal. There are few details at this time but the standards for honesty in applications will be minimal, and the speculators who gamed the system in the past will do so again. It is a gift to the scam artists from conservative US savers.

The house bail-out will serve to continue the price bubble thus making owners feel a little better about their own balance sheets. But the down direction of world economics will continue for at least two years and low future consumer confidence and spending (per capita)may not rebound any time soon.

The hard to predict variable is the influence of "technology". If a confluence of a drive to more efficiency in our lives, environmental pollution control, and longer term investment amortization happens, a new renaissance might be in the foreseeable future.