Comments on: Obama’s GM plans: good moves, poor optics http://www.creditwritedowns.com/2009/03/obamas-gm-plans-good-moves-poor-optics.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: Edward Harrison http://www.creditwritedowns.com/2009/03/obamas-gm-plans-good-moves-poor-optics.html#comment-4581 Edward Harrison Tue, 31 Mar 2009 15:58:56 +0000 http://www.creditwritedowns.com/?p=7639#comment-4581 <blockquote>A bigger problem for Obama is the fact that the voters have finally woken up and are starting to figure out that both the Democrats and Republicans have been bought and paid for by special interests who do more harm than good for the average individual. As far as the person on the street can tell there seems to be little difference between the actions of Obama and his predecessor. </blockquote> I think this is exactly right. Where all this leads is far from clear. However, your view that government interference is leading to a worse outcome does seem to have the preponderance of evidence supporting it. I do still believe that we cannot allow the economy to collapse without coutervailing fiscal stimulus to cushion the fall. But, to date, the stimulus has been too small and the other solutions have only helped to prop up zombie organizations, ruining the chance of profitability for everyone else.

A bigger problem for Obama is the fact that the voters have finally woken up and are starting to figure out that both the Democrats and Republicans have been bought and paid for by special interests who do more harm than good for the average individual. As far as the person on the street can tell there seems to be little difference between the actions of Obama and his predecessor.

I think this is exactly right. Where all this leads is far from clear. However, your view that government interference is leading to a worse outcome does seem to have the preponderance of evidence supporting it.

I do still believe that we cannot allow the economy to collapse without coutervailing fiscal stimulus to cushion the fall. But, to date, the stimulus has been too small and the other solutions have only helped to prop up zombie organizations, ruining the chance of profitability for everyone else.

]]> By: Vangel http://www.creditwritedowns.com/2009/03/obamas-gm-plans-good-moves-poor-optics.html#comment-4576 Vangel Tue, 31 Mar 2009 13:09:25 +0000 http://www.creditwritedowns.com/?p=7639#comment-4576 The problem for Obama is that the government allowed the car companies to spend $10 billion in taxpayer handouts before the administration figured out that bankruptcy is the best option. This could have been done last fall and saved the taxpayers money that they would rather not have wasted. A bigger problem for Obama is the fact that the voters have finally woken up and are starting to figure out that both the Democrats and Republicans have been bought and paid for by special interests who do more harm than good for the average individual. As far as the person on the street can tell there seems to be little difference between the actions of Obama and his predecessor. The biggest problem is that the meddling in the economy is bound to end in failure because the US is risking the status of the USD as a reserve currency. If confidence is lost in the ability of the government to repay its debts with money of equal purchasing power we are bound to see a major contraction of economic activity that coincides with a huge spike in inflation. While that could bail out the debtors by devaluing what they owe it will devastate workers, savers and consumers who will not be able to aspire to a fraction of the standard of living that they previously enjoyed. The problem for Obama is that the government allowed the car companies to spend $10 billion in taxpayer handouts before the administration figured out that bankruptcy is the best option. This could have been done last fall and saved the taxpayers money that they would rather not have wasted.

A bigger problem for Obama is the fact that the voters have finally woken up and are starting to figure out that both the Democrats and Republicans have been bought and paid for by special interests who do more harm than good for the average individual. As far as the person on the street can tell there seems to be little difference between the actions of Obama and his predecessor.

The biggest problem is that the meddling in the economy is bound to end in failure because the US is risking the status of the USD as a reserve currency. If confidence is lost in the ability of the government to repay its debts with money of equal purchasing power we are bound to see a major contraction of economic activity that coincides with a huge spike in inflation. While that could bail out the debtors by devaluing what they owe it will devastate workers, savers and consumers who will not be able to aspire to a fraction of the standard of living that they previously enjoyed.

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