Perhaps this is what we need - less borrowing and less consumption.

President Obama is now the taskmaster of the Banks and Wall Street.

President Obama is borrowing and spending more in order to convince us to borrow more and consume more.

That's what the banks, wall street and the car companies want us to do - because their whole business model is dependent on putting the consumer into a hopeless amount of debt in a quest for their trinkets.

I saw a car advertisement last night, zero down, zero interest, zero payment for the first three months - go on, buy that 300 horsepower $40,000 SUV NOW!

Nobody is buying the message any more. We're not willing victims of the banks and credit card companies with their interest rate traps.

We're not buying into the need for SUV's, McMansions, $4 latte's and credit card debt.

We are finally getting what we wished for - a more sustainable society who's consumption is more in line with being a citizen of the global world.

Henry David Thoreau must be smiling in his grave right now!

Enjoy the ride!

The suffering in this approach would be substantial and the "purge" of the financial system could take years. Think of Japan's 'lost decade'... There would be many, long-term ill effects. Be careful what you wish for...

"Where would the money come from in 2009?".

There is no short term solution for this problem. We've been borrowing and spending our way into debt for decades, and there is no little "shot in the arm" that will fix everything up.

Notice that the Bush bailout and stimulus plans (two efforts) had very little effect.

The public intuitively understands that we can't borrow and spend our way back to prosperity. The public knows these bailouts feel "wrong" and their being "had" by the rich and powerful in this country. But unfortunately the public hasn't been show what looks "right" sure what is "right" - the "right" options haven't been presented to them.

The "right" thing to do is to simply cut taxes and wait. Wait for the greedy bad banks to fold while the good banks take over the loans of the bad banks.

We have to wait for some homes to go into foreclosure so that homes become cheaper to those who have thoughtfully worked hard and saved to buy them - not extending the mortgages of those who lied about their loans or bought more than they could afford - those people can go back to renting for a while until they clear up their own finances.

We have to wait until prices drop, people become unemployed in one industry and then become employed again in another industry - maybe at the same, higher or lower wages (no moaning or complaining).

While this is going on, President Obama should work with his staff to completely overhaul our financial system. We have to take away the ability of the Federal Reserve and banks to create money out of thin air. The Congress should take control of our currency and return it to "sound money" (ie a currency backed by something more than a promise). Interest rates should be set by the market, not the Federal Reserve (cartel of bankers - talk about the fox in the henhouse!)

President Obama has to work with Congress to ensure that the Government only
spends what it takes in - and reduces the Federal Deficit. While he's at it, he's got to reduce government spending. Let's not kid ourselves - we can't afford the promises we've already made - much less make new ones.

People would then notice that we have a President that is fiscally conservative and manages money well. This would bring great confidence to the markets and to the people.

President Obama should be clear - there will be pain and suffering while our economy restructures. People will be unemployed for a while and then employed again. Banks are likely to fail. Stocks are likely to drop. But we must endure the pain now so that the recovery can come quicker.

And we must restore our country's faith in our financial system. We have to show people that the Government is not going to reward white collar criminals and incompetent management because they are "too big to fail". People should be able to save their money without having their savings robbed due to inflation. No one believes in the Federal Reserve and Bernanke because it hasn't worked and it's not working.

Bailouts and stimulus packages are wrong. We have to learn how to conserve, to save instead of spend, and to be able to wait. No instant gratification - no February surprise. There is no magic bullet to get us out of this problem - we have to be patient and suffer a little.

I'm strong enough to take the bitter pill now to have a better tomorrow - and I know there's plenty of people with American spirit who will join me. We've made it through much worse than this - I just hope Obama finally starts getting it "right".

From the 3rd comment on this blog:

PS: By the way, I'm all about locally funded, local green projects. Especially ones that are not dependent on coercively taxing of others.

QUESTION: This is a great idea for when the economy is strong, but where would the money come from in February 2009? There is very little business and consumer demand and local governments have very little surplus and are constrained in issuing debt. So what is a short-term solution, if federal spending is thought to be coercive?

Yes, even the green industry has learned to raise their trotters and bask in the trough of government pork.

The stimulus bill does not explain where the money will be coming from to pay for this pork.

However, here's where it will come from:

1) We'll loan it from the Chinese. For about two decades the Chinese have been laboring in sweatshop conditions to fully stock our Walmart shelves. Unlike their consuming American brethren, they've saved like crazy so they can loan us money to help us continue our unsustainable consumption patterns.

2) The Federal Reserve will create more money out of thin air. The Federal Reserve is waiting on standby at the printing press - ready to debase our currency should the need arise. This will result in inflation rearing it's ugly head - stealing the value away from people who actually work and save their money.

President Obama thinks that we MUST get back to our glory days of 2005 of excessive government borrowing and spending - so he's willing to borrow, spend and print money at levels never seen in the history of the world.

I would hope that President Obama has the foresight to realize the world is changing.

We'd like a sustainable economy, not one based on excessive borrowing, spending and consumption. And this bailout package is sending THE WRONG MESSAGE.

PS: By the way, I'm all about locally funded, local green projects. Especially ones that are not dependent on coercively taxing of others.

This poem is awesome and we are in trouble financially. The stimulus wont work, it may help in the short term. But Keynesian Economic fiscal stimulus will not work. We have to learn to save and only buy what we can afford

Bailout 2008, a poem by David Jeffrey

Like a bloodied warrior,
laying broken and torn.

Like a dying soldier, hopeless and forlorn.

But the blood, it be green,
the color of money.

And the soldier is an economy,
and it is anything but funny.

Broken are it's people and shattered are their dreams.

Thanks to the ultra rich and their full proof schemes.

It is a tragedy with more pain to come.

Finance will be Hell, and their wills will be done.