In President Obama’s first two weeks he has sent missile strikes into Pakistan, ordered $800 billion in bail out money and alienated Speaker Pelosi… so what’s changed? I realize, as does the president, that the current economic circumstances will take years to recover, but what the new administration is about to learn is how little the government has to do with the economy. What surprises me is that President Obama’s strategy is exactly the same as that of President Bush.
Our new president has also continued to surround himself with advisers with questionable backgrounds and connections. Our treasury secretary should be in jail for income tax evasion. The secretary of state has a foundation with her husband that accepts donations from governments with adversarial attitudes towards the US. Most recently, the nomination for health secretary is reported to have accepted what amounts to bribes (he called them “speaking fees”) from health care groups with vested interests in his upcoming decisions. Yet, his rock star status continues.
The economy continues to worsen. Government bail outs do nothing to help the people who are losing their homes. Lenders rescued by the feds are now giving creative loans to homeowners, but many of these modified loans will have adjustable rates that could skyrocket again in about 2011. Remember 11-12% interest rates during Carter’s leadership (I use the term loosely)? We have to prepare for that possibility.
Truth be told I hope I am wrong, but the best we can do is prepare for the worst.