Presidential Fearmongering

[LeBuick]

Panic spread by political leaders and the media has caused people to cut back on spending. That, in turn, has reduced demand which is followed by reduced supply. That leads to less production needed which means cut backs in employment.

The government encouraged - demanded - that mortgage lenders loan money to high risk applicants in order to make home ownership "more affordable". This lead to inflated home prices, over building of new homes, and eventually to an unacceptable level of foreclosures. The pendulum then quickly moved to extremely tight credit. Businesses can't get capital at reasonable rates so their growth slows down. They start cutting back to makes ends meet and more jobs aren't needed.

Both these problems are the direct result of government interference. No kidding at all!

I can agree with both of these and probably add more. None of that is government spending. Government spending raises the national debt but it doesn't cause unemployment and the economy to belly up.

 

[saturneptune]

http://www.breitbart.com/article.php?id=D964UGBG0&show_article=1

Obama: Catastrophe coming if Congress doesn't act


Feb 4 02:06 PM US/Eastern
By ANDREW TAYLOR
Associated Press Writer Comments (59)


WASHINGTON (AP) - Republicans tried to push back against the ballooning size of President Barack Obama's economic recovery plan Wednesday, even as he warned that the financial crisis will turn into "a catastrophe" if the bill isn't passed quickly.

Why is it that the Republicans are trying to "push back the ballooning size of the recovery plan?" Why are they not trying to defeat this bill, revoke the bailout of 2008 and demand the money be returned to the treasury? I tell you why, because the Republicans are only one degree less liberal than the democrats.

 

[dragonfly]

Why is it that the Republicans are trying to "push back the ballooning size of the recovery plan?" Why are they not trying to defeat this bill, revoke the bailout of 2008 and demand the money be returned to the treasury? I tell you why, because the Republicans are only one degree less liberal than the democrats.

Do you really think this would help during these trying times? Just return the money and everything will be alright? The problem will fix itself?

I don't think so. In fact, I worry that the stimulus bill is not large enough.

 

[saturneptune]

Do you really think this would help during these trying times? Just return the money and everything will be alright? The problem will fix itself?

I don't think so. In fact, I worry that the stimulus bill is not large enough.

No, I do not think that would solve the problem. What I do think is that it puts the responsibility where it belongs, with the individual or company that made the bad decision. Covering decisions made by people without common sense is not a function of the federal government.