My heart and prayers go out to those in Haiti. The damage is horrific and I am proud of the response of both our government and private charities but I urge my readers to be careful to whom they give money. Unfortunately, there are individuals out there who like to take advantage of tragedies like this. Give your money to organizations you can trust.
On the economic front, several items come to attention this week. The job losses continue, retail sales drop, and 2009 was a record year for foreclosures (Crutsinger & Rugaber, 2010) (Crutsinger, 2010) (AP News, 2010). It is not surprising that President Obama’s approval rating is hovering around 45 percent and a majority now says that they would vote against him if the election were today (Rasmussen Reports, 2010).
The solution to this dilemma is simple; stimulate the private sector of the economy. With stimulation (e.g. tax cuts and reduced regulation) the private sector will expand, jobs will be created, individual discretionary income will rise leading to increased spending, and people will actually make their mortgage payments. However, President Obama can have none of this and instead has chosen a different tactic.
You may recall that this whole crisis started in September of 2008 when the banking industry nearly collapsed due to numerous home foreclosures. This led to creation of the TARP fund, the intention of which was to bail out banks for the band loans on their books. Many of the banks receiving TARP funds have been able to repay them with interest and have returned to profitable operations. In my opinion this is good since profitable banks will not be coming to the taxpayers for a bailout but the president does not share this opinion.
Instead, he has decided that the banks are too profitable and are paying bonuses, oh my. President Obama cannot allow this to happen so he has decided to impose fees (i.e. penalties) on the banks (AP News, 2010). These additional fees will mean banks will have less money to lend and will increase the fees they charge their customers (e.g. ATM fees, annual fees, interest). Of course, these banks may choose to continue lending money and not increase fees, wait for the next financial crisis, and come to the taxpayers for a bailout.
Perhaps this is what the president wants to happen so he can continue to have control of the nation’s financial market. We must remain diligent and throw these Marxists out of office in the next election. We must elect leaders that will stimulate the free market instead of their campaign contributors.
We have a powerful voice and in November we can standup and speak loudly. In the mean time, we need to support candidates for office who support our free market ideas. This is our country and it is time to take it back!
References
AP News (2010, January 14, 2010). Obama seeking tax on bigger banks. Retrieved January 14, 2010, http://apnews.myway.com/article/20100114/D9D7F1MGO.html
AP News (2010, January 14, 2010). Record year for foreclosures as unemployment rises. Retrieved January 14, 2010, http://apnews.myway.com/article/20100114/D9D7AN700O.html
Crutsinger, M. (2010, January 14, 2010). December retail sales drop 0.3 percent. Retrieved January 14, 2010, http://finance.yahoo.com/news/December-retail-sales-drop-03-apf-3350007934.html
Crutsinger, M. & Rugaber, C. S. (2010, January 14, 2010). Retail sales fall unexpectedly; jobless claims up. Retrieved January 14, 2010, http://finance.yahoo.com/news/News-jobless-claims-rise-more-apf-1551827594.html
Rasmussen Reports (2010, January 14, 2010). January 14, 2010. Retrieved Daily presidential tracking poll, http://www.rasmussenreports.com/public_content/polotics/obama_administration/daily_presidential_tracking_poll.html
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