The Obamanation

TheMercenary · 09-04-2010, 09:37 AM

Quote:

Not much by way of program notes today ... and that would be because I'm taking a very well deserved extended Labor Day weekend. Buy I do want to set myself up for a good dose of "I told you so" that I might be able to cash in next week.

Two things happen this morning. First ... jobless numbers come out from Washington, and they aren't going to make Democrats happy. The people of this country are coming to realize more and more that Barack Obama is a jobs-killing president. That is what we should expect from a president who holds the private sector in disdain and who worships the god of government.

The second thing that happens is The Community Organizer coming forth to tell us what the job numbers mean. We will learn from The Chosen One that the blame really should be placed on the Republicans because, after all, they're the ones who are blocking his latest effort at a "jobs bill." So ... let's look at Obama's jobs bill.

There's $30 billion or so to loan to small businesses. Big deal. Small banks are sitting on $1 trillion in excess reserves right now ... money that could be loaned to small businesses if it were not for two things: (1) The small businesses aren't particularly to obligate themselves for any loans right now when there is so much uncertainty --- tax hikes, ObamaCare, tax and cap, card check - in their future. (2) The banks aren't all that sure about the future of these small businesses either with Obama running the show ... so they're not all that anxious to lend.

Obama will also tell us the Republicans are blocking tax cuts for small businesses. Only one problem here .. the tax cut he's talking about is a capital gains tax cut. Most small businesses - the businesses we depend on for new jobs - don't pay capital gains taxes.

Obama might use his "Republican blockade" line again. What do you call it when the Democrats absolutely refuse to allow the Republicans to offer any amendments to the bill? That's not a blockade?

Boortz.

Business as usual in Congress I see....

Lamplighter · 09-04-2010, 10:29 AM

WOW Merc ! That's one heck of a "first decision" !

Let me pull out just one part of all that because I think I'm in complete agreement...

From what I've read and heard, the underlying road block to creating jobs right away is the part about banks having been bailed out in 2009 because that they had stopped providing credit to businesses. When businesses can't get loans to meet their needs, they can't keep up with inventories, payrolls, etc., and so employees lose their jobs.

In a nutshell, if banks were not sitting on those huge cash reserves and were not involved in using Federal Reserve Bank loans for "their own investment purposes", but instead were doing what banks are supposed to do (lend $) then the downward spiral might be reversed.

So, if the King would step aside and allow me to become Uber-President,
My one first decision would be to break apart the "banking activities" from the "investment activities".
That is, force a return of banks to what they used to be, and support them via the FDIC.
The FDIC should not be used to help with management's poor investment decisions.

The was a single law passed that allowed banks to get into the stock market, but I don't remember the name or year. But I think that was the beginning of all this mess.
Whatever that law was, the first thing would be to repeal that law.

Federal Reserve Bank funds should be used only for "lending/credit/monetary policies ".
Only stock-holder should funds be used for "the private investment" activities.
That is, make the stock holders take the risks and profits that come from short term management decisions.

If I could further direct the lending activities of banks, I would set first priorities at freeing credit (loans) to big, BIG, corporations because they can re-hire thousands of employees quickly, whereas starting up or re-starting thousands of small businesses is a much longer term project. After all, it was the big BIG corporations that laid off thousands of workers at a single crack, causes the chain reaction of thousands of people losing income, losing homes, etc.

Once I accomplished all that, I would resign from Uber-President and take nap.

09-04-2010, 10:29 AM	#2
Lamplighter Person who doesn't update the user title Join Date: Jun 2010 Location: Bottom lands of the Missoula floods Posts: 6,402	WOW Merc ! That's one heck of a "first decision" ! Let me pull out just one part of all that because I think I'm in complete agreement... From what I've read and heard, the underlying road block to creating jobs right away is the part about banks having been bailed out in 2009 because that they had stopped providing credit to businesses. When businesses can't get loans to meet their needs, they can't keep up with inventories, payrolls, etc., and so employees lose their jobs. In a nutshell, if banks were not sitting on those huge cash reserves and were not involved in using Federal Reserve Bank loans for "their own investment purposes", but instead were doing what banks are supposed to do (lend $) then the downward spiral might be reversed. So, if the King would step aside and allow me to become Uber-President, My one first decision would be to break apart the "banking activities" from the "investment activities". That is, force a return of banks to what they used to be, and support them via the FDIC. The FDIC should not be used to help with management's poor investment decisions. The was a single law passed that allowed banks to get into the stock market, but I don't remember the name or year. But I think that was the beginning of all this mess. Whatever that law was, the first thing would be to repeal that law. Federal Reserve Bank funds should be used only for "lending/credit/monetary policies ". Only stock-holder should funds be used for "the private investment" activities. That is, make the stock holders take the risks and profits that come from short term management decisions. If I could further direct the lending activities of banks, I would set first priorities at freeing credit (loans) to big, BIG, corporations because they can re-hire thousands of employees quickly, whereas starting up or re-starting thousands of small businesses is a much longer term project. After all, it was the big BIG corporations that laid off thousands of workers at a single crack, causes the chain reaction of thousands of people losing income, losing homes, etc. Once I accomplished all that, I would resign from Uber-President and take nap.

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