The Obama No Plan Lacks Details; Markets Take A Dive; No Firm Plan To Prevent Foreclosures Announced; Real Estate Caused Global Economic Panic Worsens Daily


Well, at least we now know it: There really is NO plan to rescue the economy, largely because no one really has a clue how to go about doing it at this point.
The stock market was quick to come to that conclusion, driving the Dow down 382 points or 4.6 percent yesterday. Not exactly a ringing endorsement of the Obama package.

Administration officials from Obama on down, keep saying details to follow….while at the same time they tell us it is urgent to get the money and credit flowing ASAP! If it is that damn urgent…and it no doubt is…then where are the details?

Just about everyone agrees that until the housing/mortgage mess is stabilized, the world’s economy will worsen everyday. So, what does the new “plan” offer in that respect? Who knows? Missing are the details.

We’re told some 50 billion will be spent to head off foreclosures?
Really? Where is THAT money coming from? How will it work? Is it enough money? Will banks go along with it? Will the government pressure banks to do so?

See what I mean, no details.

Banks are holding unsellable mortgages…will a so-called “bad bank” set up to take toxic holdings off their books be the answer? How will that work? How will these assets be valued? Will taxpayers take a hit? (what do YOU think???) No details.

The “plan” announced with great fanfare (a mistake obviously) by Treasury Secretary Timothy Geithner envisions something like a 2.5 trillion dollar bailout, using a combination of private investor money and newly printed greenbacks courtesy of the Federal Reserve.

But will private investors really want to buy this poison? Why should they? At what price? Will taxpayers help bailout the private investors should their purchases turn soar? No details.

As these and other questions still remain mostly unanswered, more people are losing their homes, credit is still frozen, people are losing their jobs, plants are closing, countries are going bankrupt, whole political-economic systems world-wide are undergoing re-evaluation and potentially dangerous revolutionary change, Congress is still divided, Obama still doesn’t sound like he really has a solid plan……..and, yet, we STILL have few to no details.

Where is that devil when you need him??

About Author

Charles is currently reporting for KNX Radio in Los Angeles, is the co-author of the book No Time To Think, and can be found commenting about the news on his blog, The Feldman Blog, as well as on The Huffington Post.

1 Comment

  1. Why should we know details about where our money goes?

    BTW – Did anyone else catch the Democratic Senator on CNBC (I forget his name) this morning saying that this was going to be the first (actually the second if you consider that little $750 billion TARP plan passed by the Bush admin) of several bailout packages?

    Ohhhhhhh . . . more bailouts!

    I wonder how long it takes that American people to realize that these plans won’t stop because these guys haven’t a clue as to what they are going to do?

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