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??