All Posts Tagged With: "obama"

Let’s face it, the government-bond market in the West is a gigantic Ponzi scheme. Most governments in the ‘developed’ world are drowning in debt, they are running mind-boggling budget deficits and printing money…

The PIIGS owe $2 trillion, which might need to be restructured. Yes, dear reader, the sovereign debt problem is a big one – much bigger than Bear Stearns, Lehman Bros. and AIG.

Let’s see. We’ll make some guesstimates. There are about 100 million families in the US. Of those, about half are net taxpayers. And the top 10% are said to own half the wealth in the US and already pay 66% of its total taxes. Looks like they’re going to get whacked again. Each of the ‘rich’ families will pay nearly $200,000 more in taxes.

Of course, that is not what the President of the United States of America thinks. He believes a recovery is underway…and that he can now take action to reduce the feds’ stimulus.

In November, first home buyers taking advantage of the tax credit made up 50% of demand for existing homes. In December, it fell to 43%. Those two months were supposed to be the final months of the credit. The December decline shows that most people who intended to take advantage of the credit had already locked it in.

U.S. stocks fell two percent after suffering a surprise attack from the regulatory flank by President Obama. The Obama proposals are designed to prevent any one bank from becoming “too big to fail.” They aim to achieve this – in ways not pleasing to the investment banking industry – by cracking down on proprietary trading and bank sponsorship of hedge funds.

Or, is the federal government manipulating stock prices? It is spending trillions of dollars to give people the impression that things are getting back to normal.

If you believe the Obama White House and the glass-half-full press corps, you’d think this mess is now behind us. We are, after all, in a recovery…right?