Mercnbeth -> RE: Our President documents his achievements (8/21/2009 4:47:01 PM)
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Like I said, I am unsure just where I stand on it. Something had to be done, I'm just not sure what was done was the best "something". Maybe they should have just broken up GM & Chrysler and distributed their remaining assets among the remaining car manufacturers....I don't know. Part I was Bush bailing out the failures in Banking and Insurance. Listed cost was $179 Billion, although that was the result of a quick search. The second stimulus, initiated by President Obama, allocated $787 Billion in January. Pointed primarily to prevent GM and Chrysler from going bankrupt. A total of $957 Billion, going to entities that, by any standard, were failing. I agree with your assessment and opinion concerning Ford, Toyota, et al. My argument then and now was that the same money invested in successful companies could have been provided to enable Ford to buy GM/Chrysler and streamline; or gone to profitable Banks and insurance companies to buy the assets of the failures. The recently released numbers point to the worst case, or 'perfect storm' of economic collapse. Higher unemployment reduces government revenue at every level, local, state, federal. With less funds coming in, the social services in place have less money to use at the exact time more people seek them. Disconnected politicians and bureaucrats panic and raise taxes and fees to make up the gap. This results in more business cut backs, more layoffs, and further reduction in revenue. It's happening in California where after the largest tax increases went into effect in January; revenue is down and the deficit is increasing. The White House had to acknowledge the the same thing is happening. Obama to raise 10-year deficit to $9 trillion. It was just a few months ago when they claimed the Congressional Budget Office was incorrect and did not take the positive effect of the 'Stimulus Package' into account. They held to their number of $7.108 trillion. Not good, but in the hope of a positive impact. Today's news speaks to the resignation that something else can be expected as a result.
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