Not only is it not stimulating, it’s downright depressing. Gee, who knew? The massive government spending spree has had the opposite effect than what they intended. I’m sure Team Obama will be out there tomorrow spinning this as some sort of good news. Or they’ll blame it on Bush. Take your pick.
The Federal Reserve announced a $1.2 trillion plan three months ago designed to push down mortgage rates and breathe life into the housing market.
But this and other big government spending programs are turning out to have the opposite effect. Rates for mortgages and U.S. Treasury debt are now marching higher as nervous bond investors fret about a resurgence of inflation.
That’s the Catch-22 threatening to make an awful housing market potentially worse and keep the economy stuck in a funk. Kick-starting the economy requires higher spending, but rising rates mean fewer Americans will be able to refinance their home loans. And some potential buyers will be shut out of the market by higher monthly payments they won’t be able to afford. …
The White House estimates that the government will rack up an unprecedented $1.8 trillion budget deficit this year – more than four times last year’s all-time high.
“The bond market is calling the Federal Reserve out,” said Mike Larson, a real estate analyst at Weiss Research Inc. in Jupiter, Fla. “Investors are saying that the Fed can’t just print money out of thin air to finance a massive deficit.”
Investors know they can’t just print money out of thin air. Team Obama doesn’t care, because he won, so they’re going to do whatever the hell they want. It’s easy when it’s other people’s money (in this case America’s children’s) they’re playing with.
Interesting Read – Article
Luxury Condos for Homeless – Homeless Living Better Than People Who Work!
http://www.nydailynews.com/real_estate/2009/06/04/2009-06-04_neighbors_angry_vagrants_living_better_than_we_are.html
Tell me where is the incentive given for people to work?
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[...] Random Feed wrote an interesting post today onHere’s a quick excerptNot only is it not stimulating, it’s downright depressing. Gee, who knew? The massive government spending spree has had the opposite effect than what they intended. I’m sure Team Obama will be out there tomorrow spinning this as some sort of good news. Or they’ll blame it on Bush. Take your pick. The Federal Reserve announced a $1.2 trillion plan three months ago designed to push down mortgage rates and breathe life into the housing market. But this and other big government spending progr [...]
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