Is Obama Gambling on the Economy?

One of the first lectures in Economics 101 (Basic Economics) is the rule of Guns vs Butter. It is impossible for any nation to both conduct a war (Guns) while being able to also produce goods (Butter) for its civilian population. What Obama is doing is to lead the U.S. into a "tender trap" that appears to the outside as inviting with the ability to resolve all problems with money. But there is only so much money available after all the bailouts. Obama is not a magician; his smooth talk is not enough.

There's only ONE WAY that he can "pay for everything". If you read economic history, increases in the money supply (which is by the Federal Reserve) always caused inflation followed by deflation. The "good" starts to show in 9 months. The inflation starts to show in 18 months. Then during the deflation, there is unemployment.

So, YOU and I will PAY FOR it, first we pay for the money given to banks. Then we'll pay for the interest on that, through inflation. Then we'll pay for it from deflation.

One thing to worry about is that the inflation might rekindle another Savings & Loan debacle so we'll have to bail them out next!  Yeah, Obama is an idiot and his buddies, Geithener and Bernanke, ought to take a course (or at least the book by Milton Friedman, the guru of economics. But then again, they are maybe doing ALL THIS on purpose, to RUIN the USA and take us down a few notches on the world scene, leading to a one-world government where all nations are equal and none are excellent)

Didn't Cheney say "Deficits don't matter?"  Well I'm concerned that Obama believes that too ... at least during a recession.

Maybe "Keynesian economics" is necessary now.  It looks like it's working.  But I'm worried what happens if we've got to spend a lot of money again.

What "Gambel"??? No skin off his a.s.s. He's set for Life & doesn't give a Damn about U.S. (pun intended). How is he Vested??? He's NOT!!! U hear all about the "Housing Bailout" & in Reality 75% of mortgages are FHA/VA & he waited until LAST to combine these Loans with the Fanny & Freddy "Making Home Affordable" so that those in "Real Need" would have to accept Only their "Servicing Agent" (read Bank) like Wells Fargo for example. As WF did business with Lehman Bros. (most in Jail now), they have NO COMPULSION to ANY FHA LOANS because Lehman Bros. no longer are the "Investors" in FHA Loans!!! So, WF will Not & Can Not "Modify Loan" for All these People!!! This Assures that people with FHA Loans MUST Deal on WF Terms & once Again, Obummer says One Thing & Does Another!!! So, In This Instance It cost the Tax Payer nothing in "Homeowner Help" but Rather Erronously Passes out BIG BUCKS to WF & there it STOPS Never to reach the People who were "Duped" into "Housing" they couldn't Afford, while WF "Squeezes" these unfortunate People, "Double Dipping" at Others Expense"!!! The HUD officials I have spoken with ACKNOWLEDGE this HORRIBLE SITUATION saying that this was NOT their Intent nor Recommendation, but at this point there is nothing else available for these people. Bear in Mind, FHA/VA Loans are 75% of the Industry, so it appears that Omummer is "Paying Back" his Support Base at OUR expense!!! U will also note that along these same Lines the "Small Business Bailout" is ALSO having it's share of Problems getting the $$$ to the Owners. Time of course will tell & He had better watch out in the area of "Devaluing" our Currency by Printing so much, as the Chinese & others hold a lot of it!!!   John

Many economists are actually concerned that Obama is not pouring enough money into the economy. Obama had little choice but to try to stimulate the economy with as much infusion of capital as possible. The stock market has rebounded and hopefully it will continue to do so, however, what is most worrisome are the loss of jobs and home foreclosures.

Yeah, some economists probably think the moon is made of cheese, too!

Obama had plenty of choice! The economy IS coming back DESPITE the fact that NOTHING OF OBAMA's doing has "kicked in" yet (except for making bankers rich).

The stock market has rallied back because stock brokers got tired of sitting on their hands. Just because they got back to GAMBLING on stocks, it doesn't mean that the economy is better.

Many of the people (and I'm not saying all of them) criticising Obama are right wingers who rant and rave and have no constructive solutions. It is the easiest thing in the world to criticize, but let's hear some answers to how we are going to get out of this "almost Depression"!!!

No, I don't think so. It is better to have goals that might be too high and then cut back rather then have a program that in the end falls far too short of its goals due to short sightedness. This is the basics when you are negotiating in business as well as in politics. One thing that has to be done away with is pork barrel spending. If I feel that any politician is doing this, I will do everything to get him/her thrown out of office.