THE BEGINING OF PAY BACK!
    Three days after his electoral triumph, Mr. Obama broke his silence amid news of soaring unemployment,( actually it is 6.5%, the same as in Clinton's first term, 1994) plunging payrolls and weak earnings reports from General Motors Corp. and Ford Motor Co. He called the flagging auto industry "the backbone of American manufacturing," and suggested he would be more aggressive in rescuing Detroit than the Bush administration.
AT THE SAME TIME "QUEEN PELOSI IS USING HER DOUBLE TALK ASKING FOR A $69 BILLION -to-$100 billion stimulus package this month, followed early next year by a companion measure that would include a "permanent tax cut." The carrot she uses to hide the fact that this is just another leftist/socialist hand out to Democrat supporters is the "promise" of a tax cut next year. She went on to say: "the weakness in the nation's job market, and urged the White House, long skeptical of Democratic-led stimulus efforts, to work with Congress in the waning days of President George W. Bush's term. She said the U.S. can't wait for President-elect Barack Obama to be sworn into office. She said this while meeting with executives of the Detroit Auto Industries on Thursday in Washington. Executive with bloated salaries and bonuses who gave away the store to the Unions and now want the tax payer to bail them out again! They came to Washington asking for $50 billion dollars!
The Packard, Oldsmobile,Studebaker, De Soto, Nash have all passed into history. Why should the American taxpayer be asked to bail out business that has repeatedly failed to produce a product that keeps them solvent?
Obama was elected to CHANGE things for the middle class, yet he and his democrat leadership is starting to doll out tax payers dollars to the "Big Business" that he demonized in his Campaign!
Pelosi's plea for Bush to betray one more time the principles of Conservatism is nothing more than another bail out of the failed Detroit Auto industry and it's Democrat supporting Unions. The General Motors, Chrysler and Ford motor Company caved in long ago to Union demands that made their cars at least $3,000 dollars more expensive than imports of similar size, but better quality, to support Union demands.
Chrysler was on the verge of bankruptcy when German giant Mercedes Benz acquired them, and as they discovered they could not get the quality product they are known for without loosing money. So they dumped them! Why are we so different?
In small business there is a drastic shortage of government lending for the employer who employs less than 500 employees. In 2006 the SBA made 110 thousand loans to small businesses but in 2008 only 79 thousand were granted. The SBA reported last week that loan volumes made under its flagship 7(a) loan program fell 30% in the fiscal year ended Sept. 30. And in October, overall SBA loan volumes were 50% lower than in October 2007, due mainly to sharp drops in the SBA Express loan program that makes smaller loans, says Eric Zarnikow, head of the SBA's Office of Capital Access.
At the same time small bankers around the Country report that they are not benefiting at all from the "stimulus" package, and they fear that since large Banks(primarily on Wall Street) are getting the "bail-out" money. The big banks will gobble-up many small banks. Camden Fine of the IBOA says this: "Big banks say the purchase of smaller, ailing institutions by larger ones promotes the recovery of the sector. But representatives of some 8,000 community banks -- the bulk of which remain financially sound -- worry that a taxpayer-subsidized consolidation could sweep up healthy institutions that are too small to fight back.Small banks said they will launch a lobbying assault on Capitol Hill".
In 1990 and 1991 the unemployment rate was 7.8% and nobody called for a bail out to help them! The oracle of the Wall Street brokerage Houses and Bankers (WSJ) is actively stiring the pot of fear by headlining recession, the need for infra-structure spending and extending unemployment benefits. It is time to let the private sector find it's own level. Spending more taxpayers money will only delay ahd even worse debacle of "depression' like scope.
We are in exactly the same type of financial slow down that we were in the 2001 recession, and we survived that and prospered. What we do not need is the government "printing" more money to bail out favored industries, that will have to be paid with money from all Americans who pay taxes later