So, how's all of our money that you're spending, Obama, working out for us all?
The question we ask today is not whether our government is too big or too small, but whether it works -- whether it helps families find jobs at a decent wage, care they can afford, a retirement that is dignified."
-President Barack Obama, 1/20/09
Already, we see billions of our bucks being totally wasted from OUR standpoint (but not from Obama's, I bet); Chrysler and GM are front and center for this nonsense. The STEWARDofProsperity.org folks (Founder of this new think tank, Fred Tausch, was on our show here) has some info about what all that money spent has done for our house values (emphasis mine):
What's it mean? It ain't working is the short answer, and a disaster in the making (when you read the whole post) in the long term if things go to the worst side of the contemplated scenarios.If the US government and Federal Reserve having spent, lent, or committed $12.8 trillion to combat the recession has you worried about how this massive debt will affect your children’s future, think sooner and closer to, well, your home. This spending spree is already diminishing the value of your house and will drive up interest rates, creating devastating consequences for our economy.
Based on this enormous level of federal spending on bailouts and stabilizations programs, mortgage interest rates should be falling, home prices rebounding, and home sales increasing. Yet, this isn’t the case. In fact, home sales and home sale prices continue to drop, while mortgage rates are now holding steady after decreasing earlier in the year. Higher mortgage interest rates are preventing prospective home buyers from entering the market, and the subsequent lower demand for homes is putting continued downward pressure on home prices and values.
The Federal Reserve has responded to this situation by beginning quantitative easing, the buying of Treasury bonds and mortgage securities by “creating money at will.” This is similar to a homeowner taking on credit card debt to pay off the mortgage, except the Fed’s credit card has no limit and the Fed can print more money to make the monthly payments. Eventually though, payment is due, even for the Fed.
Think this phrase: Hope REALLY isn't a strategy - it's more looking like a prayer if things don't pick up. Our friend Jim from Gateway Pundit adds a few graphs to visually emphasis more economic data here:
