Wednesday, February 01, 2012
Obama and more Housing Stimulus
Do any of these folks ever learn?
Wait. That is not the issue. It's the short-term political gain. The so-called swing states are in bad shape per housing. So give them money to keep their homes. At least a little longer. So Obama can get more votes. Win those states. Win re-election.
Now don't get me wrong. I voted for him in 2008 and probably will again. Like then, the competition is poor. Or any election in my lifetime. He took on an impossible task and things have not gone to hell.
But these bailouts are just a delay tactic. That's OK when you are seeking re-election and/or want to delay the fallout until your shift is done. But... We keep using these short-term solutions to our future peril. Bush II started three wars and spent more than ever while cutting taxes. The Fed cut rates to nearly nothing and they are still there. Then when the shit hit the fan bailed the banks. And housing stimuli that only delays losing homes. Obama has essentially continued the program. Along with Helicopter Ben. And has anything really gotten better?
So in time we will pay a big price. Lets not kid ourselves. This shit began in some ways with LBJ and Nixon. All this stimulus will eventually lead to inflation. As will scarcity of resources. Water, metals and energy will all continue to be more expensive due to higher demand and more expense in obtaining.
In Medicine, when the patient is in fever and severe pain, we look for the root cause. Simply giving Tylenol for the fever and narcotics for the pain will not solve the problem. It will grow and eventually kill the patient.
Wait. That is not the issue. It's the short-term political gain. The so-called swing states are in bad shape per housing. So give them money to keep their homes. At least a little longer. So Obama can get more votes. Win those states. Win re-election.
Now don't get me wrong. I voted for him in 2008 and probably will again. Like then, the competition is poor. Or any election in my lifetime. He took on an impossible task and things have not gone to hell.
But these bailouts are just a delay tactic. That's OK when you are seeking re-election and/or want to delay the fallout until your shift is done. But... We keep using these short-term solutions to our future peril. Bush II started three wars and spent more than ever while cutting taxes. The Fed cut rates to nearly nothing and they are still there. Then when the shit hit the fan bailed the banks. And housing stimuli that only delays losing homes. Obama has essentially continued the program. Along with Helicopter Ben. And has anything really gotten better?
So in time we will pay a big price. Lets not kid ourselves. This shit began in some ways with LBJ and Nixon. All this stimulus will eventually lead to inflation. As will scarcity of resources. Water, metals and energy will all continue to be more expensive due to higher demand and more expense in obtaining.
In Medicine, when the patient is in fever and severe pain, we look for the root cause. Simply giving Tylenol for the fever and narcotics for the pain will not solve the problem. It will grow and eventually kill the patient.
