A good question to ask is why Obama cannot fix any problem he "tackles". Why is that? Why indeed. The title of Craig Steiner's article at www.finance.Townhall.com is revealing. Schizophrenia? Maybe that IS the right diagnosis for this President!
...By reading economic news, one would think the economy is slowly moving away from the financial crisis of 2008.
The truth is that absolutely nothing is changing in our economy on a day to day basis. Whether it be a tsunami in Japan or a hurricane on the eastern seaboard--or even an earthquake in Washington DC--nothing has changed economically in any significant way.
In fact, the only change since September 2008 is that things have gotten worse.
Our federal government is closer to bankruptcy, as are many of our states, counties, and cities.
Our unemployment rate is higher than it was when Obama was elected, and appears to be going higher.
We have millions of homes in or near foreclosure, and many which are abandoned and falling into disrepair, yet construction companies continue to build new homes.
Obama's stimulus failed to create jobs. So did QE1. And QE2. The Keynesian's are out of tricks.
Even as Social Security enters deficit territory we've created a new unfunded entitlement with Obamacare.
Around the world, individual debts became too much so they were unloaded on banks. The debt of the banks then became too much so they were bailed out and unloaded on the taxpayers. And now sovereign debt is too much and countries are collapsing and the United States has been downgraded.
The reality is that what the unemployed feel--that the recession never really ended--is completely true. Sure, it may have ended from a strictly statistical measure of GDP. But employment never recovered and--just as importantly--the root causes of the financial crisis have never been addressed.
We're not just going to wake up one morning and find that the economy has gotten better for no apparent reason. A month of good car sales or a quarter of increased home prices are just blips on the economic radar. As long as we continue to ignore the fundamental problems in our economy, there's no need to get excited about occasional good economic news. It's nothing more than statistical noise.
The state of our economy will not significantly change until we change our economic policies.
Instead of trying to prevent housing prices from falling, we need to let them fall and find their bottom. Instead of stopping foreclosures, we need to foreclose on homes as quickly as possible and get it over with. Instead of pumping up the stock market with QE1 and QE2, we need to let the market find its true value. Instead of trying to convince consumers to spend more money to spark economic activity, we need to encourage them to complete the process of deleveraging and fixing their balance sheets. Instead of getting in the way of corporate bankruptcies, we need to let those companies fail... READ Obama's Schizophrenic Reality.
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