Friday, March 28, 2008

Obama Exhibits Fiscal Ignorance

"I want your money. I want it all."

Obama proposes relief for homeowners, Clinton warns of 3:00 a.m. economic crisis call

Democrat Barack Obama said Thursday tougher government regulations that reflect the realities of modern finance are needed to get a grip on the economy before it gets even worse.

True to form (Liberal Democrat Politician that is) Obama exhibits an amazingly ignorant perspective on the factors that propel our economy. Observe his formula:

Raise Taxes = Economic Stimulus
Bigger Government = Economic Stimulus
More Regulation = Economic Stimulus

Time and time again, it has been proven, that cutting taxes and allowing people to invest and spend their own money (versus the government spending it for them - shut up Larry) stimulates our economy, creates jobs, and in the end actually (ironically) increases tax revenues for our liberal Congress to spend as they see fit.

If you think of our economy as a train, you make it go faster by helping the engine, not the caboose. You lighten it's load, not pile it with taxes and needless regulation.

"We do American business — and the American people — no favors when we turn a blind eye to excessive leverage and dangerous risks," Obama said.

And as you will see very soon Barrack, the market will correct this situation very quickly. People that take undue risk, whether it be investing or borrowing, sometimes realize the leveraged upside, and sometimes realize the leveraged downside. It's called risk/reward, and the two are inseparable; one does not exist without the other in the marketplace. Soon our Federal government will experience the downside of borrowing year after year to support our deficit spending.

To fix the economy, Obama proposed relief for homeowners and an additional $30 billion stimulus package to address the nation's economic woes.

"If we can extend a hand to banks on Wall Street, we can extend a hand to Americans who are struggling," he said.

Neither is a good idea. Wall Street needs to live by the risk/reward formula as much as homeowners that forgot the age-old saying "the large print giveth and the small print taketh away" or its abbreviated corollary "caveat emptor."

Bemoaning the nation's economic woes, Obama, like Clinton, dismissed McCain's approach as pure hands-off. On Tuesday, McCain derided government intervention to save and reward banks or small borrowers who behave irresponsibly though he offered few immediate alternatives for fixing the country's growing housing crisis. Obama said McCain's plan "amounts to little more than watching this crisis happen."

And liberals like Obama and Clinton think the government is there to save and solve everything and everybody.

While he laid out a half-dozen principles for closer scrutiny of the financial markets, he offered no specifics...

Again, true to form for Obama. All talk. No substance.

Even before the Democrats delivered their speeches, McCain said in a statement, "There is a tendency for liberals to seek big government programs that sock it to American taxpayers while failing to solve the very real problems we face."


No comments: